The Hang Seng Index Futures (HSIF), hampered by the negative sentiment, declined 247 pts and closed at 19,436 pts yesterday (May 23), thereby resuming its downtrend.
RHB Retail Research said today (May 24) the bourse opened at 19,688 pts then, at one point, jumped to test the day’s high of 19,820 pts.
However, selling pressure emerged near the 20-day SMA line, and pulled the index down to the day’s low of 19,351 pts before trading ended for the session. In the evening, the index retreated 151 pts and last traded at 19,285 pts.
The price action confirms that the 20-day SMA line is acting as resistance now.
Furthermore, the 20-day SMA line is trending below the 50-day SMA line, which means that the bearish setup remains intact.
Should the index extend the bearish movement, charting a “lower low”, it will retrace to 19,000 pts. RHB will stick to a negative bias, until the bearish movement is stretched out further.
