RHB Investment Bank Bhd (RHB Research) has maintained its negative trading bias on the Hang Seng Index Futures (HSIF), citing strong resistance at the 26,600-point level despite the index continuing to trade above key moving averages.
The research house said the HSIF corrected by 248 points on Friday to close at 26,267 points after profit-taking activity erased earlier gains. The index had opened at 26,493 points and climbed to an intraday high of 26,572 points before retreating to a low of 26,152 points.
Analysts noted that the benchmark later slipped another 17 points during the evening session to trade at 26,250 points, reinforcing the significance of the 26,600-point resistance level.
RHB Research said the HSIF remains firmly above its 20-day and 50-day simple moving average lines, suggesting that fresh buying interest could still emerge if the index sustains above the 20-day SMA.
However, the research house expects the resistance level to remain strong under the current bearish technical setup and advised traders to maintain short positions initiated at the 26,367-point close on Feb 26.
To manage trading risks, analysts recommended maintaining a stop-loss threshold at 26,600 points.
The first support level was identified at 25,100 points, followed by a lower support at 24,500 points, while the next resistance beyond 26,600 points is seen at 27,200 points.
