Hang Seng Index Futures (HSIF) staged a mild counter-trend rebound but remains capped below the key 26,600-point resistance level, with RHB Investment Bank Bhd maintaining a bearish trading bias despite signs of improving momentum.
During the latest session, HSIF opened at 26,238 points and moved between 26,381 and 26,106 points before closing at 26,293 points. At the time of writing, the index had climbed further to last trade at 26,684 points, briefly testing the upper resistance zone.
RHB Research said the latest price action saw a bullish candlestick formation with the index holding above the 20-day simple moving average, suggesting near-term momentum has turned more positive. The Relative Strength Index (RSI) has also begun to round upwards, indicating strengthening bullish momentum.
However, the research house noted that the 26,600-point resistance remains unbroken on a closing basis, meaning the bearish bias is still in play. It added that only a firm close above this level would invalidate the current short setup.
RHB maintained its recommendation for traders to hold short positions initiated at the close of 26 February or 26,367 points. The stop-loss level is kept at 26,600 points to manage risk exposure.
On the downside, immediate support is seen at 25,100 points, followed by 24,500 points. If upside momentum persists, resistance levels are pegged at 26,600 points and a higher barrier at 27,200 points.
