RHB Investment Bank Bhd (RHB Research) has maintained its positive outlook on Hang Seng Index Futures (HSIF), saying the contract’s broader bullish structure remains intact despite a sharp pullback on Wednesday.
The research house said the HSIF fell 238 points to close at 24,916 after failing to sustain gains above the 25,100 level. The contract opened at 25,154, climbed to an intraday high of 25,181 before selling pressure pushed it to a low of 24,815, with the session ending near its lowest level.
During the evening session, the HSIF recovered 81 points and was last seen trading at 24,997.
Despite the weaker close, RHB Research noted that the contract continues to trade above its 50-day simple moving average (SMA), suggesting buyers still retain the technical advantage.
“As long as the HSIF holds above the key support at 23,500 pts, it may stage a rebound to resume the upside movement,” it said.
The research house said a decisive breakout above the immediate resistance at 25,300 points would improve market sentiment and could pave the way for a move towards the next resistance at 26,000 points.
Given the intact bullish structure, RHB Research advised traders to maintain long positions initiated at 24,657 points on July 15.
To manage downside risks, it recommended placing a stop-loss at 23,500 points.
RHB Research identified immediate support at 23,500 points, followed by 22,500 points, while resistance levels are seen at 25,300 points and 26,000 points.
