RHB Research has continued to maintain “short” positions on HSI futures.
The HSIF failed to stage an upside rebound yesterday, and fell 11 points to settle at 20,825 points – staying below the 50-day SMA line. After two consecutive bearish sessions, the index opened at 20,866 points yesterday. Initially, it rebounded towards 21,060 points, but then retraced to the day’s low of 20,743 points, before closing in negative territory. This means the 50-day SMA line is still the overhead resistance. With the 20-day SMA line rounding lower, selling pressure might pick up in the coming sessions. Breaching the 20,473-point immediate support should attract further selling pressure, to drag the index towards the 20,000-point psychological support. In the event the index undergoes a strong rebound, it should face a stiff resistance at 21,506-point level. For now, since the index is below both the moving average line and as the correction is still in play, the research house will hold on to a bearish bias.
Traders are advised to maintain the “short” positions initiated at 20,836 points or the closing level of 12 Jul. To manage trading risks, the initial stop-loss is at 22,000 points.
The immediate support is at 20,473 points – 14 Jun’s low – followed by 20,000 points. Conversely, the immediate resistance is pegged at 21,506 points (6 Jul’s close), followed by 22,000 points.
