The bears on the Hang Seng Index Futures (HSIF) have erased the bulk of gains made on 27 Jun, dragging the index 221 pts to close weaker at 18,916 pts.
RHB Retail Research, in a note today (June 30), said yesterday, the index opened at 19,136 pts, trended south throughout the day until it hit the day’s low of 18,889 pts before closing. In the evening, it shed another 136 pts and last traded at 18,780 pts.
The price action shows that the bearish momentum is gaining pace again.
Meanwhile, the 19,250-pt level has become a stronger resistance.
At this stage, the HSIF is trending below the 20-day SMA line and the bearish setup remains firm.
A follow-through of the bearish price action would result in a retracement towards 18,500 pts. As the bears are still in control, RHB makes no change to their negative trading bias.
RHB recommends that traders maintain the short positions initiated at 18,875 pts or the close of 23 Jun. To minimise the trading risks, the initial stop-loss is set at 19,896 pts.
The nearest support is still at 18,500 pts, followed by 18,000 pts. Conversely, the nearest resistance is at 19,250 pts, followed by 19,896 pts or the close of 19 Jun.
