RHB Investment Bank Bhd (RHB Research) is maintaining its long position on Hang Seng Index Futures (HSIF) after the index staged a technical rebound, with the 25,000-point level now acting as immediate support and further upside towards 26,350 points in sight.
The research house said HSIF gained 81 points on Wednesday to close at 25,253 points after opening at 25,166 points. The index initially slipped to an intraday low of 24,947 points before recovering to a high of 25,396 points.
It eventually settled at 25,252 points with a bullish candlestick, suggesting that the 25,000-point threshold is providing support.
RHB Research said the rebound indicates that selling pressure is easing following several consecutive declines. The RSI has also started to edge higher, pointing to a gradual improvement in bullish momentum.
During the evening session, HSIF gained another 114 points and last traded at 25,367 points.
As long as the index remains above the 24,600-point support, RHB Research said the bulls retain the technical advantage.
“If the rebound persists, the HSIF may charge higher towards the 26,350-pt resistance,” the research house said, retaining its positive trading bias.
RHB Research advised traders to maintain the long positions initiated at 24,657 points, based on the July 15 close.
It has also kept the stop-loss threshold at 24,600 points to manage trading risks.
The immediate support is at 25,000 points, followed by 24,600 points. On the upside, the first resistance remains at 26,350 points, followed by the higher resistance at 26,750 points.
