Hang Seng Index Futures (HSIF) could extend its recent rebound towards the 23,750-point resistance level, although RHB Investment Bank Bhd (RHB Research) believes the broader bearish trend remains intact and continues to recommend holding short positions.
The research house said HSIF rose 246 points on Monday to close at 23,545 points after bullish momentum gathered pace during the session. The contract opened at 23,310 points, slipped to an intraday low of 23,219 points before climbing to a high of 23,682 points. During the evening session, it added another 26 points to trade at 23,571 points.
RHB said the latest rebound could see the index retest the immediate resistance at 23,750 points, where it expects selling pressure to emerge.
The research house believes the bears continue to hold the upper hand, with the index likely to consolidate below its 20-day simple moving average (SMA). Should the current positive momentum fade, HSIF may resume its bearish trajectory in the near term.
RHB said it will maintain its negative trading bias unless the index manages to close above the 24,500-point level, which would invalidate its bearish outlook.
It advised traders to maintain short positions initiated at 26,367 points, the closing level on Feb 26, while placing a stop-loss at 24,500 points to manage trading risks.
On the technical levels, RHB identified immediate support at 22,000 points, followed by stronger support at 21,000 points. Resistance is pegged at 23,750 points, with the next hurdle at 24,500 points.
