The Research house has initiated ‘SHORT’ positions on HSI futures as the stop-loss mark is triggered.
The HSIF experienced strong selling pressure yesterday, falling 801 points and closing weaker at 21,129 points. The index started off at 21,771 points. After touching 21,791 points, selling activities dragged it towards the 21,109-point day low before it closed in negative territory – breaching the supports at 21,542 points and 21,202 points. The HSIF recouped 298 points during the evening session and last traded at 21,427 points. The latest long bearish candlestick suggests the bears are now in the driver’s seat. Furthermore, trading below the 20-day SMA line also indicates a bearish structure has formed.
For the coming sessions, the index should see a correction towards 20,800 points, followed by 20,000 points. Since the bears are in control now, the research house has changed to a negative trading bias.
The research house further elaborated that it closed out the long positions initiated at 21,466 points – the close of 17 March’s day session – after the stop-loss level at 21,542 points was triggered. Conversely, they initiate ‘SHORT’ positions at the closing of 11 April, i.e. 21,129 points. To manage the trading risks, the stop-loss threshold is set at 22,535 points. The immediate support is revised to 20,800 points and followed by the 20,000-point round figure. On the flip side, the first resistance is set at 22,000 points, followed by 22,535 points, which was the high of 4 April.
