Hang Seng Index Futures : Immediate Resistance Remains Intact; Bears Still In Control 

The HSIF reverted to a correction during Friday’s session, falling 147 pts and closing lower at 18,273 pts.

RHB Retail Research (RHB) in a note today (June 10) said it initially started off trading at 18,420 pts and after touching the intraday high at 18,564 pts, it pulled back to the intraday low at 18,221 pts and closed at 18,273 pts.

In the evening, the index declined 177 pts and last traded at 18,096 pts.

The latest bearish price action, coupled with the RSI rounding downwards, suggest the bearish momentum is picking up pace again.

Meanwhile, the 18,500-pt resistance remains intact.

This has affirmed a bearish setup and that the resistance will be strong.

In the event the index breaches the 18,000-pt support, this will open the door for a further correction.

Recall that the support is normally weak during a bearish setup.

Since the bearish momentum is in play now, RHB kept the bearish trading bias unchanged.

They recommended traders to retain the short positions initiated at the close of 30 May (18,126 pts).

To manage the trading risks, the stop-loss is fixed at 19,000 pts.

The immediate support level is marked at 18,000 pts, while the lower support stays at 17,500 pts.

The nearest resistance is still pegged at 18,500 pts, followed by 19,000 pts.

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