RHB Research has retained “short” positions on HSI futures.
The FKLI staged a strong rebound during Monday’s session to edge 4.5 points higher and close at 1,500.50 points – marginally above the 1,500-point level. Yesterday, sentiment was initially negative on the benchmark index, as it gapping down to open at 1,477.50 points. Bargain hunting happened near the 1,483-point support to lift the index towards the day’s high of 1,510 points before the close. As seen, the 1,483-point level has become a strong support. Yesterday’s session also saw the day’s low of 1,476 points being higher than 24 August’s low of 1,464.50 points. The “higher low” suggest the bulls are containing the selling pressure near the support. If the index manages to close above the 1,504-point resistance, the bulls will prove they have trumped the bears. For now, since the index is still trading below the threshold, we think the bearish setup remains, and as such, we keep to our negative bias.
Traders should keep the short positions initiated at 1,485.50 points (22 Aug’s close). To minimise the trading risks, the
stop-loss is fixed at 1,504 points.
The immediate support remains unchanged at 1,483 points (24 August’s open), followed by 1,464.50 points (24 Aug’s low). The nearest resistance revised to 1,504 points (19 August’s close), with the higher resistance at 1,531 points, or the high of 17 Aug.
