RHB Research has retained its short positions on HSI futures.
After Monday’s heavy selling, the HSIF bounced off the 15,000-point support level to close at 15,179 points yesterday. The index began Tuesday session at 15,171 points. After whipsawing between 15,449 points and 14,797 points, it closed at 15,179 points. In the evening, it climbed 13 points and last traded at 15,192 points. Although the selling pressure failed to follow through during Tuesday’s session, the bearish structure remains intact. Monday’s bearish session saw a strong resistance level formed at 16,392 points. Any attempt for a technical rebound should face a tough challenge at the immediate resistance. Meanwhile, if the 15,000-point support level gives way, the index will chart a fresh “lower low” pattern, and correct towards 14,000 points. In the next immediate session, the index may continue moving sideways and consolidate along the 15,000-point level. Post consolidation, there may be another leg on the downside. At this juncture, the research house is keeping its negative bias.
Traders are advised to retain the short positions initiated at 17,221 points or the close of 10 Oct. To manage trading risks, the stop-loss threshold is fixed at 17,000 points.
The immediate support is marked at 15,000 points, followed by 14,000 points. The nearest resistance is pegged at 16,392 points – 25 Oct’s high – followed by 17,000 points.
