RHB Research maintained its negative trading bias on Hang Seng Index Futures (HSIF) and advised traders to hold their short position initiated at 24,572 points, with a stop-loss at 25,500 points.
The research house said HSIF staged a counter-trend rebound on Wednesday, gaining 143 points to close at 24,592 points after opening at 24,453 points.
Despite the rebound, RHB Research said the index remained below its 20-day and 50-day simple moving average lines, indicating that the technical setup remained bearish.
The index could continue to rebound in the near term but is expected to face strong resistance around the moving average levels, according to the research house.
RHB Research expects the correction to resume, with HSIF potentially heading towards the 24,400-point level.
At the time of writing, HSIF had fallen 63 points to 24,529 points.
The research house identified immediate support at 24,400 points, followed by 24,000 points, while resistance was seen at 25,000 points and 25,500 points.
RHB Research said the short position was initiated at the close of Sept 17 at 24,572 points and maintained its view despite the latest counter-trend rebound.
