RHB Investment Bank Bhd (RHB Research) maintained its bearish stance on the Hang Seng Index Futures (HSIF) after the contract extended losses on Tuesday, with analysts advising traders to keep their short positions intact amid continued weak momentum.
HSIF fell 68 points to close at 26,255 points after trading mostly lower throughout the session. The index opened at 26,316 points before sliding to an intraday low of 26,211 points. During the evening session, it edged up 9 points to 26,264 points.
RHB Research said the latest decline reaffirmed its view that resistance levels remain firm in the current bearish environment, while downside support continues to appear fragile.
The research house noted that the index could trend lower once the ongoing consolidation phase is completed, as bearish momentum remains intact.
Analysts recommended maintaining the short position initiated at 26,367 points on Feb 26, while keeping the stop-loss level unchanged at 26,600 points to manage trading risks.
RHB Research identified the immediate resistance level at 26,600 points, followed by a stronger resistance zone at 27,200 points.
On the downside, support levels were pegged at 25,100 points and 24,500 points.
