RHB Investment Bank Bhd (RHB Research) is maintaining its long position on Hang Seng Index Futures (HSIF) despite the index extending its correction for a fourth consecutive session, with the positive technical setup remaining intact above the 25,000-point threshold.
RHB Research said HSIF declined 279 points to 25,094 points last Friday, after opening at 25,376 points and touching an intraday high of 25,404 points before reversing to a low of 25,053 points.
The index subsequently closed with a bearish candlestick, while its evening session saw it recover 153 points to last trade at 25,247 points.
The research house said the overall price action pointed to persistent downward pressure, with the Relative Strength Index (RSI) edging lower and signalling weakening momentum.
However, despite the ongoing correction, HSIF remains above its 50-day simple moving average (SMA), keeping its bullish technical setup intact.
“If the correction deepens, the HSIF may retreat below the 25,000-pt support. Conversely, a rebound could unfold from this support area if dip buyers re-emerge,” RHB Research said.
It added that it would maintain a positive trading bias as long as HSIF stays above the 25,000-point threshold.
Traders are advised to maintain the long position initiated at 24,657 points, based on the July 15 close. The recommended stop-loss level is 24,200 points to mitigate trading risks.
The immediate support level is at 25,000 points, followed by 24,200 points, while resistance is seen at 26,000 points and 26,750 points.
