Hang Seng Index Futures (HSIF) regained bullish momentum after climbing 115 points on Friday to settle at 25,663 points, with RHB Investment Bank Bhd (RHB Research) maintaining a positive trading bias and advising traders to keep their long positions.
RHB Research said the latest advance positioned the index to test the 26,000-point resistance, while the session’s bullish price action indicated that earlier selling pressure had eased following a period of consolidation.
The HSIF opened at 25,554 points on Friday and dipped to an intraday low of 25,402 points before advancing to a high of 25,681 points. It closed near the upper end of the trading range, forming a bullish candlestick that pointed to improving sentiment.
The positive momentum extended into the evening session, when the HSIF added another 127 points and was last seen trading at 25,790 points.
According to RHB Research, the bullish candlestick suggests that earlier selling pressure has eased, while the Relative Strength Index (RSI) is turning higher to reinforce the index’s recovery phase.
The HSIF also continues to trade above its key moving average lines, preserving its broader bullish technical setup.
RHB Research said the 24,200-point level remains an important support, adding that as long as this level holds, any retracement would be viewed as a healthy pullback within the broader uptrend.
A clear break above the 26,000-point resistance could attract follow-through buying interest towards the next resistance at 26,750 points.
Based on the prevailing technical setup, RHB Research recommended that traders maintain the long position initiated at 24,657 points on July 15.
To manage downside risks, the research house placed the stop-loss at 23,500 points. The immediate support is at 24,200 points, followed by 23,500 points, while resistance is pegged at 26,000 points and 26,750 points.
