“Long” positions on HSI futures being maintained by RHB Research.
The HSIF underwent selling pressure yesterday, as the public holiday (Special Administration Region Establishment Day)is getting closer. The June futures contract declined 332 points from Tuesday’s session, to close at 22,039 points. The index started off Wednesday’s session at 22,392 points. After touching the day’s high of 22,491 points, the index reversed direction and printed the day’s low of 22,013 points before closing. Meanwhile in the evening, the July futures contract last traded at 21,937 points. Despite the negative price action yesterday, the HSIF remains above the 20-day SMA line. As long as the moving average line continues trending higher, the research house thinks the index should resume its uptrend after profit-taking activities end. In the event the selling pressure is extended, strong support should be found near the 50-day SMA line or the 21,000-point support. The research house will maintain a bullish bias until the stop-loss is triggered.