RHB Investment Bank Bhd (RHB Research) has maintained its bearish outlook on Hang Seng Index Futures (HSIF), expecting the index to extend its correction towards the 23,500-point support level following a fresh bout of selling pressure.
The research house said HSIF slipped 115 points on Thursday to close at 24,163 points after touching an intraday low of 23,949 points, forming a bearish candlestick pattern.
According to RHB Research, the latest decline reinforces a recent bearish breakout, signalling that negative momentum remains firmly in place and could drive the index lower in the near term.
It noted that the immediate support level is now pegged at 23,500 points, followed by a lower support level at 22,800 points.
While a technical rebound cannot be ruled out, the research house expects any recovery attempt to face resistance at 25,500 points. A stronger resistance level is seen at 26,000 points.
RHB Research advised traders to maintain the short position initiated at 26,367 points, the closing level on 26 February, while revising the stop-loss threshold to 26,000 points to manage trading risks.
The research house said the growing negative momentum supports its continued bearish trading bias on the Hong Kong benchmark futures contract.
