RHB Research maintained its short position on Hang Seng Index Futures (HSIF), despite the index recording two consecutive positive sessions.
In a market review, RHB Research said HSIF rose 308 points on Monday to close at 25,044 points, after opening at 24,739 points. The index touched an intraday low of 24,613 points and a high of 25,057 points before ending at 25,045 points.
During the evening session, HSIF gained another 74 points to last trade at 25,118 points.
RHB Research noted that the Relative Strength Index (RSI) was rounding upwards, indicating that selling pressure was easing. However, it expects the 20-day and 50-day simple moving average (SMA) lines to continue posing downside pressure on the index.
The research house said failure to break above the 20-day SMA could trigger fresh selling pressure, potentially dragging HSIF towards the 24,000-point level.
“Although the index has seen two consecutive positive price actions, we stick to the negative bias,” it said.
RHB Research advised traders to maintain the short position initiated at the close of Sept 17 at 24,572 points, with a stop-loss level at 25,500 points.
Following the breakout, immediate support is seen at 24,400 points, followed by 24,000 points. Resistance remains at 25,500 points, with the next level at 26,000 points.
