Corrections Still Underway for HSI Futures

RHB Research has maintained short positions on HSI futures

The HSIF extended its downside movement on Thursday to close weaker at 18,851 points. The index opened weaker at 18,997 points. It initially rebounded to test the 19,105-point day high. The bullish momentum failed to rally higher and then reversed towards the 18,771-point day low before closing in negative territory.

In the evening session, it declined 6 pts and last traded at 18,845 points. The latest price action saw the HSIF chart a “lower high” bearish pattern, suggesting the bears remain in control of the trend. The downwards movement should continue until the index is able to form a bullish reversal candlestick or hit a rejection level. Both the 20- and 50-day SMA lines continue to trend lower, further strengthening the bearish set-up. Since the technical signals remain negative, the research house is sticking to a bearish bias.

Traders are recommended to keep the short positions initiated at 19,391 points, ie the close of 2 September. To manage the trading risks, the stop-loss threshold is revised to 19,455 points from 20,200 points.

The immediate support sticks at 18,774 points – 7 Sep’s low – and is followed by 18,134 points or the low of 16 Mar. On the upside, the immediate resistance is revised to 19,168 points – 7 September’s high – and followed by 19,455 points, which was the
low of 3 August.

Previous articleFBM KLCI to Re-Test 1,500 Point Level
Next articleRetail Industry Was the Second Most Targeted Industry by Ransomware in 2021: Sophos Survey

LEAVE A REPLY

Please enter your comment!
Please enter your name here