RHB Investment Bank Bhd (RHB Research) maintained its positive trading bias and long position on Hang Seng Index Futures (HSIF), viewing the latest pullback as healthy consolidation as the index continues to hold above key support levels.
HSIF retreated 110 points on Tuesday to close at 25,226 points, continuing to trade below its 20-day simple moving average (SMA). The index opened at 25,342 points and climbed to an intraday high of 25,344 points before reversing sharply to a low of 25,158 points and settling with a bearish candlestick.
In the evening session, HSIF recovered 55 points to last trade at 25,281 points.
RHB Research said the daily candlestick indicated further short-term profit-taking pressure following the recent rebound. However, the index remains above the 25,000-point support, suggesting its broader bullish structure remains intact.
The futures contract is also trading above its 50-day SMA, which continues to slope upwards and provide underlying support, while the Relative Strength Index remains near the 50% level.
The research house said as long as the 24,600-point support holds, the consolidation could pave the way for a renewed upside attempt towards the 26,350-point resistance.
Traders are advised to maintain the long position initiated at 24,657 points on July 15, with the stop-loss level raised to 24,600 points.
The immediate support is at 25,000 points, followed by 24,600 points, while resistance remains at 26,350 points and 26,750 points.
