RHB Investment Bank Bhd’s research arm has maintained its short position on Hang Seng Index Futures (HSIF), despite the index gaining 221 points on Tuesday, as it approaches immediate resistance at 24,300 points.
RHB Research said HSIF opened at 24,017 points before falling to an intraday low of 23,990 points and climbing to a high of 24,346 points. It closed at 24,256 points, while the evening session saw the index gain another 18 points to last trade at 24,272 points.
The research house said the Relative Strength Index (RSI) is rounding upwards, indicating that selling pressure is easing. However, the 20-day and 50-day simple moving average lines are expected to continue exerting downside pressure.
Failure to break above the 20-day SMA could trigger fresh selling pressure and drag HSIF towards the 23,600-point level, RHB Research said.
Despite several consecutive positive price movements, the research house maintained its negative bias and advised traders to retain the short position initiated at the close of Sept 17 at 24,572 points.
The stop-loss threshold has been revised to 25,000 points, while immediate support remains at 23,600 points, followed by 23,100 points. Resistance is pegged at 24,300 points, followed by 25,000 points.
