The Hang Seng Index Futures (HSIF) continued its downward trend on Wednesday according to RHB Investment Bank Bhd (RHB Research), closing at 20,204 points after falling below the 50-day simple moving average (SMA). The session began with the index at 20,436 points, peaking at 20,563 points before reversing to a low of 20,153 points. Although the index recovered slightly in the evening, trading at 20,215 points, the overall bearish sentiment remains intact.
RHB Research advised traders to maintain short positions, indicating that the technical setup suggests further downward movement is likely. The medium-term moving average is trending lower, adding pressure to the index. The research house predicts that if the HSIF falls below the key support level of 20,000 points, additional corrections could occur.
The nearest support level for the index is now at 20,000 points, followed by 19,000 points, while resistance is pegged at 21,250 points and then 23,000 points. RHB Research has recommended that traders keep their short positions initiated at the close of 9 October when the index was at 20,628 points, with a stop-loss set at 21,250 points to mitigate trading risks.
Overall, the bearish technical indicators highlight a challenging environment for traders as they navigate potential further declines in the HSIF.
