RHB Research has maintained its ‘SHORT’ positions on HSI futures.
The HSIF bulls are testing the 20-day SMA line resistance after the index rebounded strongly during the evening session. It experienced selling pressure during yesterday’s day session, and declined 235 points to close at 20,719 points. However, it managed to recoup 215 points in the evening, and was last traded at 20,934 points – still looking to cross above the 20-day SMA line. A breach above the short-term moving average line may be an early indication that the index is completing its correction phase. A move above the 21,129-point resistance, meanwhile, will weaken the Bearish Marubozu formed on 11 April. However, for now, the Bearish Marubozu candlestick remains intact and the bears are still in control.
If selling pressure intensifies again, the index will resume its correction towards the 19,625-point support. The research house is keeping their negative bias until the stop-loss is triggered.
The research house advises the traders of HSI futures to hold on to the short positions initiated at 21,129 points, or the close of 11 April. To manage trading risks, the stop-loss threshold is placed at 21,595 points.
The immediate support is revised to 19,625 points – 27 April’s low – followed by 18,134 points, or the low of 16 March. On the upside, the first resistance is pegged at 21,129 points – 11 April’s close – followed by 21,595 points, or the high of 14 April.
