“Short” positions are being maintained by RHB Research on HSI futures in view of the consolidation stage.
Despite the HSIF charging higher on the back of a bullish momentum, it still fell short of strength to break past the 21,000-pt resistance. After the bears took profits, it gave up its partial intraday gains to close at 20,896 points, albeit, gaining 238 pts from the previous session. The index started off Wednesday’s session at 20,688 points and rose towards the session high at 21,135-point before the close. During evening session, the index retreated 150 points and last traded at 20,746 points. The latest candlestick with a long upper shadow affirms that 21,000 points is acting as a strong resistance, and remains intact for now. Furthermore, the index has closed below the 50-day SMA line, echoing that the bearish setup remains in sight. The index may consolidate below the moving average line before it launches a fresh attempt to cross the immediate resistance. In the event the selling pressure increases, it may retrace to 20,543 points, followed by the 20,285-point support. For now, the research house is holding on to its bearish bias until the stop-loss is triggered.
Traders should keep the short positions initiated at 20,836 points i.e. the closing level of 12 Jul. To minimise the trading risks, the stop-loss is set at 21,000 points.
The immediate support stays at 20,543 points – 14 July’s low – followed by 20,285 points, the close of 15 Jul. Towards the
upside, the immediate resistance is still eyed at 21,000 points, followed by 21,506 points, or the close of 6 July.
