HSI Futures Re-Testing 19,063-Point Strong Support

RHB Research has retained its “short” positions on HSI futures.

The HSIF’s multi-sessions selling momentum persisted yesterday as it fully wrote-off its intraday gains to settle 13 points lower at 19,137 points – re-testing the 19,063-point strong support (10 May’s low). The index opened at 19,143 points and rose to touch the 19,321-point high before strong selling interest emerged. It then fell for the rest of the session, hitting the day’s low at 19,061 points before rebounding mildly at the close.

The evening session saw the index fall sharply by 194 points to last trade at 18,943 points. The latest bearish movement signals the continuation of the downward trend remaining intact, with the index expected to move lower in the coming sessions i.e. a sharp fall towards the 18,134-point support (16 Mar’s low), followed by the 18,000-point psychological support. With selling momentum increasing, the research house is sticking to its bearish trading bias.

Traders to keep the short positions at 19,391 points, or the closing level of 2 September. To mitigate the trading risks, the initial stop-loss is placed at 20,200 points.

The immediate support is revised to 18,134 points, or 16 Mar’s low, followed by the 18,000-point psychological level.
Towards the upside, the immediate resistance is set at 19,063 points, or the low of 10 May, followed by 19,455 points – 3
August’s low.

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