Once again, RHB Research has retained its short positions on HSI futures.
The HSIF retreated 369 points to close at 16,511 points yesterday – giving up the gains made during Tuesday’s session. The index started Wednesday off at 16,877 points. After touching the 16,980-pont session high, it progressed lower until it hit the 16,487-point session low before the close. In the evening, the HSIF declined 268 pts and last traded at 16,243 points. The latest price action saw the negative momentum gaining strength and eyeing to close below the 16,400-point support. If the negative momentum continues, the index may descend towards 15,800 points.
As long as the HSIF continues to trade below the 20-day SMA line with “lower high” patterns, the bearish set-up remains intact. The correction will continue until the index is able to form bullish reversal patterns near the support level. With the negative momentum in play now, the research house is holding on to a negative bias.
Traders are recommended to retain short positions initiated at 17,221 points or the close of 10 Oct. To minimise the
trading risks, the stop-loss threshold is fixed at 17,325 points.
The immediate support sticks at 16,400 points and is followed by 15,800 points. Meanwhile, the nearest resistance is
pegged at 17,325 points – 11 Oct’s high – and followed by 17,798 points, ie the high of 10 Oct
