Hong Kong’s Hang Seng Index Futures (HSIF) ended a volatile trading week under pressure as repeated failures to break above the key 26,600-point resistance level reinforced bearish sentiment, while weakness in technology shares dragged the broader Hong Kong market lower.
RHB Investment Bank Bhd maintained its negative trading bias throughout the week, repeatedly identifying the 26,600-point level as a major technical barrier preventing the market from sustaining upward momentum.
The week began with HSIF retreating 248 points on May 11 to close at 26,267 points after profit-taking erased earlier gains. Although the contract continued trading above its 20-day and 50-day simple moving averages, analysts said upside momentum remained fragile under the prevailing bearish technical structure.
A mild rebound followed on May 12, with HSIF rising 56 points to 26,323 points, while evening trade lifted the contract further to 26,421 points. However, RHB Research said the rebound failed to form a “higher high” candlestick pattern, indicating that the recovery lacked conviction and remained vulnerable to renewed selling pressure.
The cautious tone persisted on May 13 as HSIF slipped 68 points to 26,255 points amid weak momentum and continued consolidation. Analysts warned that the index could trend lower once the consolidation phase concludes, with downside risks still dominant below the resistance threshold.
HSIF attempted another breakout on May 14, briefly climbing to 26,684 points during intraday trade as momentum indicators showed signs of improvement. Despite the temporary surge, the contract again failed to secure a firm close above 26,600 points, prompting RHB Research to retain its bearish outlook.
Selling pressure intensified by May 15, with the broader Hong Kong market closing sharply lower. The Hang Seng Index fell 426.31 points or 1.62% to 25,962.73, after trading between 26,391.02 and 25,847.15 during the session.
Technology stocks led the decline as the Hang Seng TECH Index dropped 2.66% to 4,941.14, while the HSCEI lost 1.89% to 8,691.03. The Hang Seng Biotech Index also declined 2.05% to 13,871.32, reflecting broader weakness across growth-oriented sectors.
HSIF itself closed at 26,337 points on May 15 after touching an intraday high of 26,862 points before retreating sharply. RHB Research said the formation of a “long upper shadow” candlestick pattern signalled strong selling activity near resistance levels, reinforcing the view that bears continued to hold the technical advantage.
Throughout the week, analysts identified immediate support levels at 25,100 points and 24,500 points, while resistance remained firmly capped at 26,600 points, followed by a higher barrier at 27,200 points.
