Once again, RHB Research has called for “short” positions on HSI futures.
Yesterday, the HSIF failed to cross above the 20,200-point resistance, drifted south and closed at 20,000 points. The index opened the session at 19,988 points, then slid to the day’s low of 19,816 points before staging a rebound to test the day’s high of 20,235 points. However, selling pressure near the immediate resistance was strong and, in the afternoon, pulled the index down to its closing level. In the evening, the index retreated 110 points and last traded at 19,890 points. The Bearish Marubozu (formed on 29 July) has set a strong resistance at the 20,200-point level. These technical signals, on top of the 20-day SMA line trending lower, have enhanced the bearish set-up. The index should pull back towards the recent low of 19,455-point level. Unless a strong momentum emerges to lift the index upwards – breaking past the immediate resistance – the HSIF will stay in a downward trajectory. As such, no change to bearish bias.
Traders should stick to the short positions initiated at 20,836 points (12 July’s close). To minimise the trading risks, the stop-loss is set at 20,200 points.
The immediate support remains at 19,455 points – 3 Aug’s low – followed by 19,063 points, or the low of 10 May. On the flip side, the immediate resistance remains at 20,200 points, followed by 21,000 points.
