RHB Research has maintained its long position on Hang Seng Index Futures (HSIF), with the research house keeping a positive trading bias despite a recent pullback and setting the stop-loss threshold at 24,600 points.
HSIF eased 72 points on Thursday to close at 25,598 points after opening at 25,675 points. The index climbed to an intraday high of 25,780 points before retreating to a low of 25,511 points. During the evening session, it fell another 122 points to last trade at 25,476 points.
RHB Research said the pullback reflected selling pressure emerging near the 20-day simple moving average (SMA) line, while the index had also crossed below the line, reinforcing the prevailing downtrend.
However, the research house noted that the Relative Strength Index was hovering around the 50% level, suggesting underlying bullish momentum remained intact.
RHB Research said HSIF could trend higher towards the immediate resistance at 26,350 points as long as it holds above 24,600 points. A stronger rebound could then see the index test the higher resistance at 26,750 points.
The long position was initiated at 24,657 points on July 15. RHB Research placed immediate support at 25,500 points followed by 25,000 points, while maintaining its positive trading bias despite the broader bearish technical structure.
