RHB Research has maintained ‘short’ positions on HSI futures.
The HSIF experienced a fresh round of selling activities yesterday, retreating 464 points to close weaker at 20,745 points. On Thursday, the index started off at 21,175 points. At one point during the day session, it jumped to test the day’s high at 21,492 points. However, the momentum reversed, dragging the index towards the day’s low of 20,576 points before the close. In the evening session, the index declined another 212 points and last traded at 20,533 points. The latest price action has negated the Bullish Crossover signal of the 20-day and 50-day SMA lines. If the index continues to trade beneath the moving average line, expect the negative momentum to accelerate in the coming sessions. It may correct towards 20,500 points, followed by the 20,000-point level. As the bears are still in control (evident by the Bearish Marubozu), hence no changes to negative bias made by the research house.
Traders are recommended to stay with the short positions initiated at 20,598 points, or the closing of 13 June’s evening
session. To manage the trading risks, the stop-loss is fixed at 22,000 points. The immediate support stays at 20,500 points, followed by the 20,000-point round figure. Meanwhile, the nearest resistance is revised to 21,200 points, followed by 21,758 points, or the high of 13 June.
