HSI Futures: Hitting New Low in 2022

Technical Analysis on HSI Futures (HSIF)

RHB Research has maintained short positions on HSI futures.

The downtrend on the HSIF was extended last Friday, and the index shed 273 points to close at 17,899 points last Friday. It opened at 18,161 points, printed the day’s high of 18,225 points before progressing south to hit the session’s low of 17,868 points before closing. In the evening, it declined by another 195 points and last traded at 17,700 points. The latest negative price action saw the index charting a fresh “lower high” with “lower low”, strengthening the bearish setup. Meanwhile, the RSI continues to trend lower, showing that the negative momentum is picking up now. After breaching the 18,134-point support, the index should continue retracing towards 17,500 points, followed by the 17,000-point support. With the negative momentum gaining pace now, no change to bearish bias.

Traders should stick to the short positions initiated at 19,391 points, or the close of 2 September. To minimise the trading risks, the stop-loss is still at 19,455 points.

The immediate support is now at 17,500 points, followed by 17,000 points. Conversely, the immediate resistance has been
changed to 18,500 points, with the higher resistance pegged at 19,000 points.

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