RHB Research once again, has maintained short positions on HSI futures.
The HSIF underwent a rebound from the 15,000-point support to close at 15,329 points yesterday. It opened at 15,160 points, jumped to test the day’s high of 15,595 points before retracing in the afternoon. In the evening, it rose 327 points and last traded at 15,656 points. Note that the index remained above the 15,000-point support for two consecutive sessions, showing that support is firming up. However, the momentum was not strong to push the HSIF past the immediate resistance. As such, the Bearish Marubozu formed on 24 Oct remains valid, and the bears are still in control. The index may move sideways in the coming sessions, towards a consolidation. The RSI is below the 50% threshold, which suggests that the negative momentum is still in play. Hence, it is very likely that the index will resume its downtrend post consolidation. Pending a bearish breakout, the research house will maintain its negative bias.
Traders should keep to the short positions initiated at 17,221 points or the close of 10 Oct. To minimise the trading risks, the stop-loss is set at 17,000 points.
The immediate support remains unchanged at 15,000 points, followed by 14,000 points. Conversely, the first resistance is
still at 16,392 points – 25 Oct’s high – followed by 17,000 points.
