Hang Seng Index Breaches 20,000-pt Support, Bearish Momentum Gains Pace

RHB Investment Bank (RHB Research) maintains its short position on the HSIF as the index fell below the 20,000-pt mark, closing at 19,821 pts yesterday and extending its correction phase.

The index opened at 20,018 pts, reached a high of 20,095 pts, and then retreated to the day's low of 19,757 pts before settling below the critical 20,000-pt support. In the evening session, it lost an additional 66 pts to last trade at 19,755 pts.

The 50-day SMA line continues to trend downward, exerting bearish pressure on the index, while the RSI indicator signals strengthening negative momentum. With the index breaking below a key support level, RHB Research expects the bearish price action to persist and test the next support at 19,000 pts. Should a rebound occur, the index will likely face stiff resistance at 20,500 pts.

Given the prevailing bearish sentiment, RHB Research advised traders to retain the short positions initiated on Oct 9 at 20,628 pts, with a stop-loss placed at 21,250 pts to manage trading risks. The first support is now revised to 19,000 pts, with a further downside target at 18,000 pts. On the upside, immediate resistance is set at 20,500 pts, followed by 21,250 pts.

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Hang Seng Index Breaches 20,000-pt Support, Bearish Momentum Gains Pace

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