RHB Investment Bank Bhd (RHB Research) has maintained its bearish outlook on Hang Seng Index Futures (HSIF), despite the contract extending last week’s rally, as it expects the key 24,500-point resistance level to cap further gains.
The research house said HSIF rose 43 points on Monday to close at 24,201 after trading between 24,084 and 24,444 during the session.
It noted that the latest higher high close reflects improving bullish momentum after the index broke above its 20-day simple moving average (SMA) in the middle of last week. The stronger momentum could see HSIF retest the immediate resistance at 24,500.
However, RHB Research believes the technical outlook remains bearish as long as the contract stays below the 24,500-point level.
As a result, it advised traders to maintain the short position initiated at 26,367 points on Feb 26, with a stop-loss placed at 24,500 to manage trading risk.
The research house identified immediate resistance at 24,500, followed by 26,000, while support levels are seen at 23,000 and 22,000.
