RHB Investment Bank Bhd (RHB Research) has maintained its bearish stance on the Hang Seng Index Futures (HSIF), despite the contract extending its counter-trend rebound for a third straight session.
The research house said HSIF gained 115 points to close at 24,356 on Tuesday after trading between an intraday low of 23,889 and a high of 24,442. The contract also added another 44 points in evening trade to around 24,400.
RHB Research noted that the latest session marked the third consecutive higher low candlestick, signalling that bullish momentum is strengthening in the near term.
However, it expects the 50-day simple moving average (SMA) and the key resistance level at 24,500 to cap further gains, saying resistance typically remains firm during a broader bearish trend.
As a result, the research house is retaining its negative trading bias and advises traders to maintain their short position initiated at the close of Feb 26 at 26,367.
To manage risk, it recommended placing a stop-loss at 24,500, which also serves as the first resistance level. The next resistance is seen at 26,000.
On the downside, RHB Research identified initial support at 23,000, followed by a lower support level at 22,000.
