Hang Seng Index Futures Faces Strong Resistance At 20,000 Points, Say Analysts

Business Today · Dec 2, 2024 08:01

RHB Investment Bank Bhd (RHB Research) has reiterated its recommendation to maintain short positions on the Hang Seng Index Futures (HSIF), citing persistent bearish trends and strong resistance at the 20,000-point level.

On Friday, the HSIF registered a positive session, gaining 108 points to close at 19,505 points. The index opened at 19,401 points, climbed to a high of 19,723 points, but faced a retracement in the afternoon before closing. During the evening session, it rose an additional 137 points, last trading at 19,642 points.

Despite the recent recovery, RHB Research noted that the index is struggling to break above the 20-day simple moving average (SMA) line. The bank expects significant selling pressure near the 20,000-point resistance level, capping any further upward movement. As long as the index remains below the critical 21,250-point resistance, the overall bearish outlook remains intact.

RHB Research advises traders to maintain short positions initiated on Oct 9 at 20,628 points, with the stop-loss set at 21,250 points. Key support levels are identified at 19,000 points and 18,000 points, while resistance levels are at 20,000 points and 21,250 points.

The bank anticipates the HSIF will resume its downtrend in the coming sessions, underpinned by the bearish technical setup and strong resistance levels.

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Hang Seng Index Futures Faces Strong Resistance At 20,000 Points, Say Analysts

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