Hang Seng Index Futures Struggling To Climb Above The 19,000-Pt Level

Hong Kong Exchange

After breaching below the 19,000-pt level, the HSIF staged a mild rebound to close at 19,270 pts. The index began Tuesday’s session at 18,971 pts and rose towards the day’s high of 19,307 pts before closing at 19,270 pts.

RHB Retail Research, in a note today (March 22), said the evening session saw it managing to add 141 pts to last trade at 19,411 pts.

Although the index charted a bullish candlestick during the day session, we observe that it was a “lower high” bearish signal.

Moreover, during the previous sessions, the index failed to chart a “higher high” bullish candlestick. As such, it is apparent that the bears still possess an upper hand and the bearish setup remains valid. Both the 20-day and 50-day SMA lines continue to trend lower, indicating that the downtrend is getting firmer.

The index may consolidate sideways along the 19,000-pt level. However, post consolidation, RHB believes it will resume its downward movement. Hence, it makes no changes to our negative bias.

Traders should hold on to the short positions initiated at 21,643 pts (3 Feb’s close). To mitigate the trading risks, the trailing stop is fixed at 20,750 pts.

The first support is marked at 18,527 pts (5 Dec 2022’s low), followed by the 18,000-pt round figure. Towards the upside, the immediate resistance is pegged at 20,000 pts, followed by 20,750 pts.

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