RHB Research maintained its short position on Hang Seng Index Futures (HSIF) after the contract resumed its bearish structure on Wednesday.
RHB Research said HSIF fell 138 points to close at 24,116 points after opening at 24,259 points and moving lower throughout the session. It hit an intraday low of 24,053 points.
During the evening session, HSIF declined another 154 points to last trade at 23,962 points.
The recent pullback reaffirmed the research house’s view that the bearish setup remains strong under current market conditions, with the index expected to continue correcting towards the 23,600-point support if selling pressure intensifies.
RHB Research said the Relative Strength Index (RSI) had also turned lower, indicating that bearish momentum had picked up pace again.
The research house maintained its negative bias and advised traders to stick to short positions initiated at the close of Sept 17 at 24,572 points.
The stop-loss threshold has been revised to 25,000 points to mitigate trading risks.
The immediate support level remains at 23,600 points, followed by 23,100 points. On the upside, resistance is seen at 24,300 points and 25,000 points.
