RHB Investment Bank (RHB Research) maintained its bearish outlook on Hang Seng Index Futures (HSIF), citing strengthening negative momentum and continued selling pressure in the market.
The research house said the HSIF extended its correction on Wednesday, falling 261 points to close at 25,265 points after retreating from an intraday high of 25,654 points.
According to RHB Research, strong selling activity pushed the index down to an intraday low of 25,236 points before the close, while evening trading saw the contract slipping further to around 25,259 points.
The research house noted that the latest negative price action, combined with a weakening Relative Strength Index (RSI), indicates that bearish momentum is intensifying amid broader risk-off sentiment in the market.
RHB Research said the bears are now likely to test the immediate support level at 25,100 points, with further downside potentially extending towards the next support at 24,500 points if selling pressure persists.
The firm added that resistance levels are expected to remain intact under the current bearish setup, reinforcing its negative trading bias on the index futures contract.
RHB Research advised traders to maintain short positions initiated at the 26 February close of 26,367 points, while keeping a stop-loss level at 26,600 points to manage trading risks.
The immediate resistance level is pegged at 26,600 points, followed by a higher resistance level at 27,200 points, according to the report.
