Hang Seng Index Futures: Falling To A Year New Low

After breaching the 19,000-pt support, the HSIF plunged to a new low in 2023 to close at 18,695 pts.

RHB Retail Research, in a note today (May 29), said market sentiment remained bearish on last Thursday, after the index opened at 19,089 pts, progressing lower throughout the session and recording the intraday low of 18,609 pts before the close.

The long bearish candlestick shows the bears dominated the session, eyeing to test the next support at the 18,500-pt level. The 19,000-pt level, which has been a support for the past six months, is now the latest resistance.

After a bearish breakout, the index may attempt to stage a rebound to reclaim the 19,000-pt level.

However, we think the momentum may not be strong enough to break past the 19,000-pt resistance, and there will likely be a follow through of the negative momentum.

Since the bearish structure is firmly intact for now, RHB will keep the negative trading bias unchanged.

Traders are advised to hold on short positions initiated at 19,924 pts, or the close of 24 Apr. To manage the trading risks, the stop-loss is revised to 20,000 pts from 20,500 pts. The immediate support is adjusted to 18,500 pts, followed by 17,400 pts. Towards the upside, the immediate resistance is pegged at 19,000 pts, followed by 20,000 pts.

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