Since the bearish momentum is still holding, RHB Research has maintained “short” positions on HSI futures.
The HSIF failed to cross above the 20,200-point immediate resistance, pulling back below this threshold to close at 20,121 points. It opened at 20,134 points on Friday, and jumped to test the day session’s high of 20,355 points. However, strong selling pressure emerged to drag it to the session’s low of 20,050 points before the close. In the evening, it retraced 106 points and was last traded at 20,015 points. The latest price action showed that the immediate resistance remains intact, and the index is yet to form a meaningful “higher high” bullish pattern. As such, the bears still have the upper hand for now. Meanwhile, the RSI is still hovering below the 50% threshold, suggesting that the index will revert to negative momentum. If this happens, it should retrace towards the 19,455-point immediate support. As the index is still trading below the immediate resistance, and the 20-day SMA line is trending lower, the bearish setup remains valid. The research house is staying with its bearish trading bias.
Traders are advised to stick with the short positions initiated at 20,836 points, or 12 July’s close. To minimise the trading
risks, the stop-loss is set at 20,200 points.
The immediate support is kept at 19,455 points – 3 August’s low – followed by 19,063 points, or the low of 10 May. On the
other hand, the immediate resistance is still pegged at 20,200 points, followed by 21,000 points
