RHB Investment Bank Bhd (RHB Research) has maintained its negative outlook on Hang Seng Index Futures (HSIF) after the benchmark breached a key support level, signalling that bearish momentum is gaining strength.
The research house said HSIF resumed its correction phase after falling below the 24,500-point support level on Wednesday, closing at 24,278 points.
The index opened lower at 24,632 points amid risk-off sentiment and briefly touched an intraday high of 24,694 points before trending lower throughout the session. It subsequently hit a low of 24,147 points before ending the day with a solid bearish candlestick formation.
In the evening session, HSIF recovered 29 points to trade at 24,307 points.
According to RHB Research, the latest bearish breakout, coupled with a downward-turning Relative Strength Index (RSI), indicates that strong bearish momentum remains in play.
The research house expects the next support level to emerge at 23,500 points, followed by 22,800 points.
It noted that both the 50-day and 200-day simple moving average (SMA) lines continue to trend lower, reinforcing downward pressure on the index.
RHB Research said it would retain its negative trading bias until HSIF closes above the 26,000-point level.
The firm advised traders to maintain short positions initiated at the close of Feb 26 at 26,367 points, while revising the stop-loss level to 26,000 points to manage trading risks.
On the upside, immediate resistance is seen at 25,500 points, followed by the stronger resistance level of 26,000 points.
