RHB Investment Bank Bhd (RHB Research) maintained its negative trading bias on the Hang Seng Index Futures (HSIF) after the contract extended its bearish trajectory on Thursday amid weakening technical indicators.
The research house said HSIF fell 182 points to close at 25,392 points after opening at 25,577 points. The index touched an intraday high of 25,827 points before retreating to a low of 25,297 points.
In evening trading, the contract recovered 176 points and was last traded at 25,568 points.
RHB Research said the technical setup remained bearish as the index continued trading below both its 20-day and 50-day simple moving average lines, while the Relative Strength Index was also trending lower, signalling that negative momentum was building.
The research house expects HSIF to test the 25,100-point support level, although it warned that the support appeared weak under the current bearish setup.
“A bearish breakout would open the door for further correction towards 24,500 points,” it said in its report.
RHB Research advised traders to maintain short positions initiated at the close on Feb 26 at 26,367 points, with a stop-loss set at 26,600 points to manage trading risks.
The research house identified immediate resistance at 26,600 points, followed by a higher resistance level at 27,200 points.
