Despite the decent technical rebound, RHB Research is still maintaining “short” positions on HSI futures.
The HSIF attempted to extend its technical rebound, and tested the immediate resistance of 20,200 points. Last Friday, the index closed higher from the previous day by 102 points, at 20,129 points. Although it jumped to test the 20,334-point intraday high, strong selling pressure near the immediate resistance pushed the index to close below the threshold. Meanwhile, in the evening session, it dropped 6 pts and last traded at 20,123 points. Based on the latest price action, the bullish momentum is gaining traction, but the index has yet to chart a fresh “higher high”. As the immediate resistance remains intact, and as the index still trading below the 20-day SMA line, it is deemed the bearish structure as active. In the event the index breaches above the resistance, expect strong momentum to follow through. Before HSIF stages a bullish breakout, the research house is maintaining a bearish bias.
Traders should hold on to the short positions initiated at 20,836 points or 12 July’s close. To manage the trading
risks, the stop-loss is set at 20,200 points.
The immediate support is at 19,455 points – 3 August’s low – followed by 19,063 points, or the low of 10 May. On the flip side, the immediate resistance still at 20,200 points, followed by 21,000 points
