RHB Investment Bank Bhd (RHB Research) has maintained its positive outlook on Hang Seng Index Futures (HSIF), saying the contract’s bullish structure remains intact despite a pullback in the evening session.
The research house noted that HSIF gained 294 points on Thursday to close at 25,210 points after trading between an intraday low of 24,863 points and a high of 25,290 points. During the evening session, however, the contract eased 325 points to around 24,885 points.
RHB Research said the relative strength index (RSI) remains above the 50% level, indicating that bullish momentum is still in play.
It added that the contract continues to trade above both its 20-day and 50-day simple moving average lines, giving buyers the technical advantage.
The research house is maintaining its long trading position initiated at 24,657 points on July 15 and has raised its stop-loss level to 24,200 points from 23,500 points to better manage trading risks.
According to RHB Research, immediate support is seen at 24,200 points, followed by 23,500 points. On the upside, the first resistance level is pegged at 25,300 points, with the next target at 26,000 points.
While acknowledging the possibility of increased selling pressure, RHB Research said the prevailing technical indicators continue to support a positive trading bias for HSIF.
