HSI Futures seen as challenging the 21,000-point resistance level, RHB Research has once again called for maintaining “short” positions on this futures.
The HSIF staged a strong rebound during Tuesday’s session, rising 326 points and closing at 20,887 points. The index set off the session at 20,592 points. After setting its foothold at the 20,543-point day low, it climbed towards the 20,977-point day high before the close. In the evening, it pulled back 287 points and last traded at 20,600 points. The latest price action saw the HSIF managing to bounce off the 20,543-point support. As long as the One White Soldier pattern – together with the 20,285-point support – stays intact, the index should climb higher to test the 21,000-point immediate resistance. On the flip side, breaching below 20,285 points will negate the bullish reversal pattern and attract strong selling pressure. For now, as the HSIF has yet to break past the immediate resistance to form a “higher high”, it is deemed the bears as still in control. As such, the research house is holding on to its negative bias.
Traders are advised to keep the short positions initiated at 20,836 points or the closing level of 12 July. To minimise the trading risks, the stop-loss threshold is fixed at 21,000 points.
The immediate support remains at 20,543 points – 14 July’s low – and is followed by 20,285 points. On the upside, the
immediate resistance is pegged at 21,000 points with the subsequent resistance at 21,506 points, which was the close of 6