Bears of HSI Futures Eyeing The 20,000-Pt Threshold :RHB Research


The research house is maintaining its ‘SHORT’ positions on HSI futures with the bearish pattern dominating at the moment.

Selling pressure persisted for a third consecutive session, causing the HSIF to retrace 271 points to settle the day’s session at 20,658 points. It started higher at 20,959 points yesterday and continued to surge to
test the day’s high of 21,062 points before falling strongly to hit the day’s low of 20,485. It then rebounded moderately to close at 20,658 points. The evening session saw it shed another 377 points, to last trade at 20,281 points.

The latest closing price further signifies selling interest amid the “lower low” bearish pattern, and that the index may retrace towards 20,000 points in the coming sessions. The downtrend movement remains intact, with the 20-day SMA line remaining as the overhead resistance level. Coupled with the weakening of the RSI at the 35% level, thus the research house is sticking to their negative trading bias.

Traders are reminded that they should keep the short positions initiated at 21,129 points, or the close of 11 April. For trading risk management, the stop-loss is adjusted to 21,595 points from 22,000 points. The immediate support is placed at 20,400 points, followed by 20,000 points. Conversely, the first resistance is still at 21,595 points (14 April’s high), followed by the 22,000-point round figure.

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