RHB Research is still maintaining its ‘SHORT’ positions on the HSI futures.
The HSIF is seen as attempting to build an interim base near the 20,000-point level. The Apr 2022 futures contract rebounded 222 points yesterday, settling at 20,149 points. Despite a strong performance during the day session, the index pared its gains in the evening, with the May 2022 futures contract retreating 62 points. It last traded at 20,112 points. For the past two sessions, the research house observed that the index has been charting “higher lows”, indicating that selling pressure is tapering.
If the HSIF manages to build an interim base or bullish reversal pattern around the 20,000-point level, it may climb to test the immediate resistance at 20,708 pts. Meanwhile, the RSI continues to hover below the 50% threshold, showing that negative momentum is still in play. If selling pressure picks up again, the index should retrace towards 19,424 points, followed by 18,134 points. For now, the research house is holding on to their negative trading bias.
Traders are recommended to stay with the ‘SHORT’ positions initiated at 21,129 points, or the close of 11 April. To minimise the trading risks, the stop-loss threshold is fixed at 21,595 points or 14 April’s high. The immediate support is marked at 19,424 points – 14 March’s low – followed by 18,134 points, or the low of 16 March. The first resistance is set at 20,708 points, or 25 April’s high, and followed by 21,129 points, which was the close of 11 April.
