RHB Investment Bank Bhd (RHB Research) has maintained its negative outlook on Hang Seng Index Futures (HSIF) despite a technical rebound that saw the index recover from the key 24,500-point support level.
HSIF rose 59 points on Tuesday to close at 24,623 points after falling to an intraday low of 24,373 points. The contract later recovered to a session high of 24,732 points before settling higher, forming a bullish candlestick pattern that suggests the 24,500-point level is acting as immediate support.
However, the rebound proved short-lived as HSIF slipped a further 182 points during the evening session to 24,441 points.
According to RHB Research, the latest price action indicates that selling pressure is beginning to ease following a series of declines, while the Relative Strength Index (RSI) is showing signs of gradual improvement in bullish momentum.
Nevertheless, the research house said the broader market structure remains bearish and viewed the recent rebound as a corrective pause within the prevailing downtrend.
RHB Research noted that as long as HSIF remains below the 26,600-point level, its negative trading bias remains unchanged.
The research house advised traders to maintain short positions initiated at 26,367 points on Feb 26, with a stop-loss set at 26,600 points.
For technical levels, immediate support is seen at 24,500 points, followed by 23,500 points, while resistance is pegged at 26,000 points and 26,600 points.
