RHB Investment Bank Bhd (RHB Research) has reiterated its negative trading bias on the Hang Seng Index Futures (HSIF), despite fresh positive price action observed on Tuesday.
The HSIF rose 190 points to close at 19,811 points, breaking above the 20-day SMA line. The session began at 19,626 points, with the index testing an intraday high of 19,831 points before closing with a white candlestick. However, in evening trading, the index shed 26 points to settle at 19,785 points.
The RSI indicates a strengthening bullish momentum, suggesting the potential for the index to test the immediate resistance at 20,000 points. A breakout above this level may boost market sentiment, but RHB Research notes strong resistance at 21,250 points, which aligns with the bearish setup.
Traders are advised by RHB Research to maintain short positions initiated on Oct 9 at 20,628 points, with a stop-loss threshold set at 21,250 points.
Key support levels are identified at 19,000 points and 18,000 points, while resistance levels remain at 20,000 points and 21,250 points.