Analysts Maintain Negative Bias On Hang Seng Index, Advise Traders To Stay Short

RHB Investment Bank Bhd (RHB Research) has maintained its recommendation for traders to hold short positions on the Hang Seng Index Futures (HSIF), despite the index's recent climb above the 20-day simple moving average (SMA) line.

The HSIF closed at 19,933 points last Friday, recovering from an intraday low of 19,594 points and briefly reaching a high of 20,003 points. However, in evening trading, the index shed 112 points to last trade at 19,821 points.

RHB Research noted that the index's rise above the 20-day SMA line signals bullish intent, with traders now eyeing the immediate resistance at 20,000 points. A breach of this level could improve market sentiment, although a stronger resistance is anticipated at 21,250 points. Conversely, a fall below the 20-day SMA line would signal a continuation of the ongoing correction.

The research house advised traders to maintain short positions initiated at the Oct 9 close of 20,628 points. To mitigate risk, the stop-loss level is set at 21,250 points. Immediate support levels are marked at 19,000 points and 18,000 points, while resistance levels are pegged at 20,000 points and 21,250 points.

RHB Research emphasised that it retains a negative trading bias until the index surpasses the stop-loss threshold.

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Analysts Maintain Negative Bias On Hang Seng Index, Advise Traders To Stay Short

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