Hang Seng Index Futures: Bearish Structure Remains Sighted

The HSIF continued moving lower during Friday’s session, declining 125 pts to close weaker at 16,248 pts – firming its position below the 20-day SMA line.

RHB Retail Research in a note today (Apr 22) said last Friday, the index started off at 16,372 pts.

It progressed lower throughout the session until hitting the 16,035 pts day’s low and closing at 16,248 pts.

In the evening, it recouped 83 pts and last traded at 16,331 pts.

The latest bearish price action saw the index continuing to chart “lower high” with “lower low”.

As it is trading below both the 20- and 50-day SMA lines, the bears are having the technical advantage now.

Riding on the bearish momentum, the HSIF is poised to breach the 16,000 pts support.

Pending the bearish breakout, they retain the negative trading bias.

Traders should hold on the short positions initiated at 16,551 pts (the close of 19 Mar).

To manage the trading risks, the initial stop-loss threshold is set at 17,251 pts.

The nearest support is marked at 16,000 pts, while the lower support is at 15,500 pts.

On the flipside, the immediate resistance is revised to 16,600 pts, followed by 17,251 pts, ie the high of 14 Mar.

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