RHB Research has maintained its ‘SHORT’ positions on the HSI futures.
The HSIF extended the correction for a fourth consecutive session, falling 396 points to settle at 19,474 points. The index then declined another 110 points during the evening session and last traded at 19,364 points. Despite the bears still having the upper hand during this correction phase, buying pressure started building up near the 19,000-point support. In the event the immediate support gives way, the index should correct towards the YTD low at 18,134 points. Conversely, the bulls may attempt to stage a rebound to test the immediate resistance at 20,300 points. As the bullish reversal pattern has yet to be sighted, it is premature to confirm the HSIF has found the interim base – the research house expects the downside correction to continue. For now, they retain their negative bias.
Traders are advised to keep to the ‘short’ positions initiated at 21,129 points or the close of 11 April. For trading-risk
management, the stop-loss mark is revised to 21,216 points from 21,595 points. The immediate support is revised to the 19,000-point round figure and followed by 18,134 points, which was the low of 16 March. The immediate resistance has been changed to the 20,300-point whole number. The higher resistance is seen at 20,694 points, i.e. the high of 6 May.
