RHB Investment Bank Bhd (RHB Research) maintained its long position on Hang Seng Index Futures (HSIF), keeping a positive trading bias as long as the index holds above the 25,000-point support despite continued weakness in the near term.
HSIF extended its correction on Tuesday, falling 281 points to close at 25,172 points. The index opened at 25,172 points and climbed to an intraday high of 25,522 points before reversing to a low of 25,166 points and closing with a bearish candlestick.
In evening trading, HSIF recovered four points to last trade at 25,176 points.
RHB Research said the continued weakness points to sustained downward pressure, with the Relative Strength Index (RSI) also drifting lower to reflect softer momentum.
However, the index remains above its 50-day simple moving average (SMA), suggesting that the broader uptrend remains intact for now.
Should selling pressure continue, RHB Research expects HSIF to retrace towards the 25,000-point support, where a technical rebound could emerge if buying interest returns.
The research house maintained the long position initiated at 24,657 points based on the July 15 close. The stop-loss threshold has been raised to 24,600 points to manage trading risks.
The immediate support is at 25,000 points, followed by 24,600 points, while resistance remains at 26,350 points and 26,750 points.
