RHB Investment Bank Bhd (RHB Research) maintained its negative view on Hang Seng Index Futures (HSIF), saying the correction phase remains intact despite a minor rebound from key support levels.
The research house noted that HSIF came under selling pressure for a fourth consecutive session on Monday, falling 131 points to close at 23,761 points. The index touched an intraday high of 23,920 points before declining to a low of 23,434 points.
RHB said the long lower shadow formed during the session indicates strong support has emerged around the 23,500-point level. However, it cautioned that the broader trend remains bearish and the support zone could eventually give way, opening the door for further downside movement.
The research house added that the 20-day simple moving average continues to trend lower and remains an overhead resistance, reinforcing the negative technical outlook.
As a result, RHB advised traders to maintain short positions initiated at 26,367 points, with a stop-loss set at 26,000 points to manage risks.
On the downside, immediate support is seen at 23,500 points, followed by a lower support level at 22,800 points. Meanwhile, resistance is pegged at 24,500 points, with a higher resistance level at 25,500 points.
RHB said it will retain its bearish trading bias until stronger signs of a trend reversal emerge.
