RHB Investment Bank Bhd (RHB Research) is maintaining a positive trading bias on Hang Seng Index Futures (HSIF), saying bulls are starting to regain control after the index extended its rebound on Wednesday.
The HSIF added 120 points to close at 25,670 points, having opened at 25,562 points and briefly slipped to an intraday low of 25,526 points before climbing to a high of 25,819 points.
The index ended with its second consecutive bullish candlestick, pointing to stronger buying interest and improving bullish momentum.
In evening trading, however, the HSIF gave back 55 points to last trade at 25,615 points.
According to RHB Research, the follow-through rebound suggests that selling pressure has eased, with buyers once again taking the driver’s seat. The RSI is also rounding upwards, indicating that market sentiment is turning more positive.
The index has also moved back above its 20-day simple moving average (SMA), suggesting that the broader bullish structure remains intact.
“As long as the index stays above the 25,000-pt support, the recent pullback should be regarded as a healthy consolidation within an ongoing uptrend,” RHB Research said.
For now, the research house said it would stick to a positive trading bias and advised traders to maintain long positions initiated at 24,657 points, based on the July 15 closing level.
To manage trading risks, RHB Research has placed the stop-loss threshold at 24,600 points.
On the technical front, immediate support is seen at 25,500 points, followed by the stronger support level at 25,000 points.
On the upside, the first resistance is at 26,350 points while the next resistance is pegged at 26,750 points.
The setup, therefore, remains constructive for HSIF as long as the index holds above the key 25,000-point support, with further upside in sight should buying momentum continue.
