Hang Seng Index Futures (HSIF) extended their decline for a third consecutive session as selling pressure persisted, prompting RHB Investment Bank Bhd (RHB Research) to maintain its bearish trading stance on the contract.
In a trading note, RHB Research Institute said the Hang Seng Index Futures (HSIF) fell 523 points to close at 25,132 points during the day session. The contract opened at 25,642 points and slipped to an intraday low of 24,887 points before settling lower.
However, the evening session saw some recovery, with the futures adding 402 points to last trade at 25,534 points.
Despite the rebound, the research house said the overall price action remains negative, although strong psychological support is expected around the 25,000-point level. The index may move sideways along this immediate support in the near term.
RHB Research noted that a bullish reversal candlestick could signal a potential shift in momentum if it forms near the support level. Should the support break, the correction could deepen towards 24,500 points.
“Maintain short position,” the research house said, adding that traders should retain the short position initiated at the close of Feb 26 at 26,367 points.
To manage risk, the stop-loss level has been set at 28,600 points.
Looking ahead, the first support level is pegged at 24,500 points, followed by 23,500 points, while immediate resistance is seen at 26,600 points and 27,500 points.
