RHB Investment Bank Bhd (RHB Research) has maintained a bearish outlook for the Hang Seng Index Futures (HSIF), advising traders to hold short positions as the index continues to exhibit weak momentum.
On Thursday, the HSIF dropped 200 points to close at 19,397 points, after trading between a high of 19,700 points and a low of 19,360 points. In the evening session, it recovered 58 points, last trading at 19,455 points. Despite the slight rebound, the index remains below its 20-day and 50-day simple moving average (SMA) lines, signalling persistent bearish sentiment.
RHB Research highlighted that the 20-day SMA line is continuing its downward trend, applying further pressure on the index. If the HSIF falls below the 19,000-point support level, a deeper correction is expected. On the upside, resistance remains at 20,000 points, with further resistance at 21,250 points.
Traders are advised to retain short positions initiated at the 20,628-point close on Oct 9, with a stop-loss set at 21,250 points. Immediate support levels are at 19,000 points and 18,000 points.
