RHB Investment Bank Bhd (RHB Research) is maintaining its long position on Hang Seng Index Futures (HSIF) despite the contract retreating sharply on Wednesday, with the research house expecting a potential technical rebound near the immediate 25,000-point support.
HSIF declined 220 points to close at 25,408 points on Wednesday after opening at 25,629 points and initially climbing to an intraday high of 25,700 points.
The index subsequently reversed course, falling to an intraday low of 25,308 points before ending the session with a bearish candlestick.
During the evening session, HSIF fell another 88 points and last traded at 25,320 points.
RHB Research said the strong sell-off signals renewed downward pressure, with the index now edging closer to its immediate support level.
“Keep the long position,” the research house said in its technical analysis report dated Aug 13.
RHB Research said a technical rebound could develop around the 25,000-point support, although a decisive close below this level could weaken market sentiment and increase downside pressure.
Despite the ongoing pullback, the research house said it would maintain a positive trading bias unless the stop-loss threshold is breached.
Traders are advised to maintain the long position initiated at 24,657 points, based on the July 15 close, with a stop-loss threshold at 24,200 points to minimise trading risks.
The immediate support level is placed at 25,000 points, followed by 24,200 points.
On the upside, the first resistance is at 26,000 points, followed by a higher resistance at 26,750 points.
