RHB Research is maintaining its long position on Hang Seng Index Futures (HSIF) despite a further pullback on Friday, with the index now approaching the major 24,600-point support level.
HSIF fell 101 points to close at 24,799 after trading between 24,551 and 24,909. It slipped another six points in evening trading to last trade at 24,793 points.
RHB Research said bearish pressure is strengthening as the index remains below its 20-day and 50-day simple moving average lines. However, it expects strong support to emerge around 24,600 points.
As long as HSIF holds above 24,600 points, the research house expects the index to consolidate before making another attempt to move above the 50-day SMA or retest 25,250 points.
RHB Research advised traders to maintain long positions initiated at 24,657 points on July 15, with the stop-loss level now set at 24,600 points.
Below 24,600 points, the next support is at 24,000 points, while resistance is seen at 25,250 points followed by 26,000 points.
