RHB Investment Bank Bhd (RHB Research) maintained its bearish stance on the Hang Seng Index Futures (HSIF) after the contract extended its decline and reinforced a negative technical outlook.
The research house said HSIF resumed its bearish structure on Wednesday, falling 457 points to close at 25,491 points after opening at 25,937 points. Selling pressure persisted throughout the session, with the index touching an intraday low of 25,462 points before sliding a further 179 points during the evening session to 25,312 points.
According to RHB Research, the latest pullback confirms that bearish sentiment remains firmly in control, with downside momentum gaining pace. The research house noted that the Relative Strength Index has turned lower, signalling a renewed acceleration in selling pressure.
RHB Research said traders should maintain short positions initiated on 26 February at 26,367 points, while keeping a stop-loss level at 26,600 points to manage risks.
The first support level is seen at 25,350 points, followed by 24,500 points should the correction deepen further. On the upside, immediate resistance is pegged at 26,600 points, with stronger resistance at 27,400 points.
The research house believes the current market environment continues to favour a negative bias, with the bearish setup remaining intact unless HSIF stages a meaningful recovery above key resistance levels.
