Hang Seng Index Futures: Attempting To Climb Above The 20-Day SMA Line

The HSIF staged a strong rebound on Monday, climbing 273 pts to close at 16,521 pts as it looks to reclaim the territory above the 20-day SMA line.

RHB Retail Research in a note today (Apr 23) said the index began trading at 16,242 pts yesterday.

It jumped to the 16,656-pt high before closing at 16,521 pts.

In the evening, it added 160 pts and was last traded at 16,681 pts.

The latest price action showed that the counter-trend rebound is in progress, while bullish momentum is gaining pace.

However, as long as the index stays below the 20-day SMA line, the bears will still have the technical advantage.

They observed that the 20-day SMA line is trending downwards, suggesting that the short-term trend is bearish.

They will hold on to the negative trading bias until the index breaks past the 17,251-pt resistance level.

Traders are advised to retain the short positions initiated at 16,551 pts (the close of 19 Mar).

To minimise the trading risks, the initial stop-loss is placed at 17,251 pts.

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

The first resistance is at 16,600 pts, followed by 17,251 pts, which was the high of 14 Mar.

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