RHB Research has once again maintained “short” positions HSI futures.
After it was blocked by the 21,000-point resistance, the HSIF pulled back sharply on Thursday, retracing 323 points to close at 20,573 points. Yesterday, the index began the session at 20,886 points. After touching the day’s high of 20,917 points, the momentum reversed direction and headed for the day’s low of 20,502 points before closing. In the evening, it recouped 143 points and last traded at 20,716 points. The latest bearish candlestick showed that the bears remain in control. In addition, the 50-day SMA line overhead resistance has strengthened. Meanwhile, the 20-day SMA line is trending lower, which adds downward pressure on the index, thereby strengthening the bearish set-up. For the immediate session, the bulls may attempt to stage a rebound near 20,543 points and the 20,285-point support. As long as the index stays below 21,000 points, it is expected strong selling pressure to continue posing a downside risk. As such, the research house will stick to a negative bias.
The technical analyst has put forth the recommendation that traders remain in the short positions initiated at 20,836 points, or the closing level of 12 July. To manage the trading risks, the stop-loss is set at 21,000 points.
The immediate support is at 20,543 points – 14 July’s low – followed by 20,285 points or the close of 15 July. Conversely, the immediate resistance is at 21,000 points, followed by 21,506 points i.e. the close of 6 July.
