With the negative market sentiment, the RHB Research is maintaining it ‘SHORT’ positions on the HSI futures
The HSIF drifted lower on Friday, as momentum remained negative. The index plunged 775 points to settle the day session at 19,870 points. In the evening, it lost another 181 points and last traded at 19,689 points.
The index is testing the immediate support at 19,625 points. A breach of this immediate threshold would trigger the index to retrace towards the YTD low of 18,134 points.
On the upside, the 20-day and 50-day SMA lines are both now acting as resistance levels. As both moving average lines are trending lower, the upside resistance has strengthened further. With the RSI also moving downwards, momentum is decelerating, and it is very likely that the index will remain below the 20-day SMA line. As there is another leg on the downside, the research house is keeping a negative bias on the said futures.
Traders of HSI futures are advised to hold on to the short positions initiated at 21,129 points or the close of 11 April. To manage the trading risks, the stop-loss threshold is set at 21,595 points. The nearest support remains at 19,625 points (27 April’s low), followed by 18,134 points, or the low of 16 March. The first
resistance stays at 21,129 points – 11 April’s close – followed by the higher resistance at 21,595 points, or the high of 14 April.
