RHB Investment Bank Bhd (RHB Research) maintained its negative trading bias on Hang Seng Index Futures (HSIF) and advised traders to hold their short position after the contract plunged 712 points on Friday.
HSIF opened at 24,322 points before falling to an intraday low of 23,833 points and closing at 23,880. The contract then shed another 49 points in evening trading to last trade at 23,831.
RHB Research said the latest price action indicated strong negative momentum, with HSIF breaking below the 24,400 and 24,000 support levels and reaffirming bearish control.
The research house expects any counter-trend rebound to face resistance at 24,300 points, while the index could extend its correction towards the next support at 23,600 points.
RHB Research therefore made no change to its negative trading stance and advised traders to maintain the short position initiated at the close of Sept 17 at 24,572 points.
The stop-loss level has been revised to 25,000 points to mitigate trading risks.
Following the bearish breakout, RHB Research identified immediate support at 23,600 points, followed by 23,100 points. Resistance was placed at 24,300 points and then 25,000 points.
