Due to the weak momentum seen in the HSI futures in the past 1 week, the research house has maintained ‘SHORT’ positions on it.
On the eve of the Good Friday market break, the HSIF staged a mild rebound to settle at
21,521 points, amid weak momentum. On Thursday morning, it opened at 21,396 points. After trading between 21,351 points and 21,595 points, it closed near the day session’s high, recording 210-point gain. However, the index gave up most of the gains and retreated 169 points in the evening. It was last traded at 21,352 points.
The evening session reaffirmed that sentiment remains cautious, and the bears are still in control. As the Bearish Marubozu remains intact, the research house holds the opinion that selling pressure will strengthen in the coming sessions. This is in addition to the 20-day SMA line still acting as an overhead resistance – thus they hold the belief that the index will retrace towards the next support level at 20,800 points.
Any rebound attempt will face stiff resistance at 22,000 points. As momentum remains weak, thus the research house is holding on to their negative trading bias.
HSI Futures traders are recommended to keep the short positions initiated at 21,129 points, or the close of 11 April. To mitigate trading risks, the initial stop-loss is set at 22,535 points.
The immediate support is projected to be at 20,800 points, followed by 20,000 points. The nearest resistance is pegged at 22,000 points, followed by 22,535 points, or the high of 4 April.
