RHB Investment Bank Bhd (RHB Research) has maintained its negative trading bias on the Hang Seng Index Futures (HSIF) after the contract extended its correction and broke below a key support level.
The research house said HSIF fell 400 points on Thursday to close at 25,091 points after reversing from an intraday high of 25,549 points to test a low of 25,075 points, forming a bearish candlestick pattern.
RHB Research noted that the latest price movement reflects persistent downward pressure, with the Relative Strength Index (RSI) continuing to weaken. The index is also trading below both its 20-day and 50-day simple moving averages (SMA), reinforcing the corrective trend.
“The breakout below our previous support at 25,350 points further strengthens the bearish outlook,” it said.
Should negative market sentiment persist, the research house expects the HSIF to drift towards the next support level of 24,500 points. A stabilisation in sentiment could, however, trigger a rebound from that level.
RHB Research advised traders to maintain short positions initiated at 26,367 points on Feb 26, while keeping a stop-loss threshold at 26,600 points to manage risk.
Following the recent bearish breakout, support levels have been revised to 24,500 points and 23,500 points, while immediate resistance is seen at 26,000 points, followed by 26,600 points.
