Hang Seng Index Futures Gains Momentum But Bearish Bias Maintained

RHB Investment Bank Bhd (RHB Research) has advised traders to maintain short positions on the Hang Seng Index Futures (HSIF) despite a notable gain on Tuesday, where the index climbed 234 points to close at 20,130 points, crossing the 50-day simple moving average (SMA) line.

Tuesday's session opened at 19,891 points, with the index recording a low of 19,815 points before testing a session high of 20,189 points. The second consecutive white candlestick, coupled with a rising Relative Strength Index (RSI), indicates bullish momentum is gathering pace.

RHB Research anticipates the HSIF to consolidate near the 20-day SMA line in the coming sessions, potentially attempting to breach the 20,500-point resistance. However, resistance at this level is expected to remain strong in the prevailing bearish environment, with a higher resistance at 21,250 points.

The research house maintains its bearish trading bias until the HSIF closes above the 21,250-point threshold. Traders are advised to retain short positions initiated on Oct 9 at 20,628 points, with a stop-loss threshold set at 21,250 points.

Immediate support levels are marked at 19,000 points and 18,000 points, while key resistances are seen at 20,500 points and 21,250 points.

Hang Seng Index Futures Gains Momentum But Bearish Bias Maintained

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