The Hang Seng Index Futures (HSIF) extended its upward momentum on Monday, adding 116 points to close at 19,621 points. Despite the back-to-back bullish candlesticks and a "higher low" formation, the index remains below the 20-day and 50-day Simple Moving Average (SMA) lines, suggesting the bearish trend remains intact, according to RHB Investment Bank Bhd (RHB Research).
Monday's session saw the HSIF trade between 19,753 and 19,447 points, with the immediate resistance pegged at the 20,000-point level. Stronger resistance is anticipated at 21,250 points, with the index facing challenges in sustaining a meaningful upward breakout.
Traders are advised by RHB Research to maintain short positions initiated on Oct 9 at 20,628 points. The stop-loss level is set at 21,250 points to mitigate risks. Immediate support is located at 19,000 points, followed by a stronger floor at 18,000 points.
Despite the recent rebound, RHB Research predicts the technical outlook continues to favour a bearish trajectory unless the index clears the 20-day SMA line convincingly.
