RHB Investment Bank Bhd (RHB Research) has maintained its negative view on Hang Seng Index Futures (HSIF), advising traders to retain short positions despite the index extending its rebound for a second consecutive session.
The research house said HSIF gained 131 points on Monday to close at 24,832 points after trading between a low of 24,588 points and a high of 25,032 points. In evening trading, the contract slipped 33 points to 24,799 points.
RHB Research noted that the Relative Strength Index (RSI) is turning higher, indicating that selling pressure is easing. However, it expects the 20-day and 50-day simple moving average (SMA) lines to continue acting as resistance.
It warned that failure to break above the 20-day SMA could trigger renewed selling pressure and drag the index towards the 23,500-point level.
Although HSIF has recorded two straight days of gains, the research house said it remains cautious and is maintaining its bearish bias.
RHB Research recommended that traders keep short positions initiated at the close of Feb 26 at 26,367 points, with a stop-loss set at 26,000 points to manage risks.
The first support level is seen at 23,500 points, followed by 22,800 points. On the upside, resistance is pegged at 25,500 points, with a stronger resistance level at 26,000 points.
