RHB Investment Bank Bhd (RHB Research) has maintained its bearish outlook on Hang Seng Index Futures (HSIF), saying the benchmark is likely to extend its correction after forming fresh bearish technical signals.
The research house said HSIF fell 309 points on Thursday to close at 23,081 points after trading between an intraday high of 23,465 points and a low of 22,983 points.
During the evening session, the index slipped a further 21 points to 23,060 points.
According to RHB Research, the latest trading session produced a fresh “lower high” and “lower low” bearish candlestick, indicating that downside momentum is continuing to strengthen.
The research house expects the index to retrace towards its next support level at 22,800 points while maintaining its negative trading bias.
RHB Research said any rebound is likely to face stiff resistance around the 24,500-point level, noting that resistance tends to remain strong in a bearish market environment and could limit any upside movement.
The first support level is identified at 22,800 points, followed by 22,000 points. Immediate resistance stands at 24,500 points, with the next resistance at 25,500 points.
In line with its cautious outlook, RHB Research advised traders to maintain the short position initiated at the close on Feb 26 at 26,367 points.
To manage downside risks, the research house recommended placing a stop-loss at 26,000 points.
