RHB Investment Bank Bhd (RHB Research) has maintained its long position on Hang Seng Index Futures (HSIF), viewing the latest pullback as a consolidation phase rather than a break in the broader uptrend.
HSIF eased 35 points to close at 25,373 points on Wednesday after opening at 25,404 points. The index moved between an intraday high of 25,513 points and a low of 25,266 points before settling lower.
The weakness continued in the evening session, with HSIF falling another 159 points to last trade at 25,214 points.
According to RHB Research, the latest price action saw HSIF slip below its 20-day simple moving average (SMA), suggesting the index could enter a period of correction or consolidation.
However, the futures contract remains above the key 25,000-point support, keeping its broader bullish structure intact. The relative strength index (RSI) also remains around the midline, which RHB Research said could point towards a rebound once the consolidation phase is completed.
“Keep the long position,” RHB Research said.
The research house is maintaining the long position initiated at 24,657 points based on the July 15 close, with a stop-loss threshold at 24,200 points.
The immediate support levels are at 25,000 points and 24,200 points, while resistance is seen at 26,000 points followed by 26,750 points.
RHB Research added that as long as HSIF holds above the 24,200-point threshold, the current retracement is likely to remain a pause within the ongoing bullish setup.
