RHB Research has maintained its bearish trading bias on Hang Seng Index Futures (HSIF), retaining a short position initiated at 24,572 points while setting 24,400 points as the immediate support and 25,500 points as the stop-loss level.
The HSIF fell 240 points yesterday to close at 24,815 points after opening at 25,072 points and touching an intraday low of 24,802 points.
The decline extended into the evening session, with the index falling another 106 points to last trade at 24,709 points.
RHB Research said the recent price action remained negative, although the HSIF could consolidate sideways in the coming sessions before potentially moving lower towards the 24,400-point support.
A break below 24,400 points could see the correction extend towards the 24,000-point mark, it said.
However, RHB Research noted that a bullish reversal candlestick could signal a change in direction and allow the HSIF to move higher towards resistance.
For now, the research house said the bearish setup remained valid and maintained its negative trading bias.
The immediate support levels are at 24,400 points and 24,000 points, while resistance is seen at 25,500 points followed by 26,000 points.
RHB Research advised traders to maintain the short position initiated at the close of Sept 17 at 24,572 points, with a stop-loss at 25,500 points.
