Hang Seng Index Futures Downtrend Persists Below Key Moving Averages

RHB Investment Bank Bhd (RHB Research) has maintained its negative trading bias for the Hang Seng Index Futures (HSIF) as it continued its consolidation phase, falling 17 points to close at 19,737 points yesterday.

The index traded within a range of 19,919 to 19,655 points before closing, while in the evening session, it dropped further by 73 points to 19,664 points.

The HSIF remains below both the 20-day and 50-day simple moving average (SMA) lines, which are now sloping downward, signalling sustained bearish momentum. The Relative Strength Index (RSI) remains below the 50% mark, reflecting weak momentum and limited upside potential.

RHB Research forecasts a potential test of the 19,000-point support level in the coming sessions, with further downside to 18,000 points if selling pressure intensifies. Immediate resistance is pegged at 20,500 points, followed by 21,250 points.

Traders are advised to hold short positions initiated at 20,628 points (close of Oct 9, 2024) and manage risks with a stop-loss at 21,250 points.

The bearish technical setup suggests the HSIF is unlikely to break above overhead resistance, reinforcing the case for continued downside pressure.

Hang Seng Index Futures Downtrend Persists Below Key Moving Averages

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