RHB Investment Bank Bhd (RHB Research) is maintaining its short position on Hang Seng Index Futures (HSIF) after the contract fell for a second consecutive session on Thursday, with further downside towards 23,600 points in sight.
HSIF dropped 343 points to close at 23,773 points, having opened at 24,109 points and traded between an intraday high of 24,126 points and a low of 23,692 points. It recovered 29 points during the evening session to last trade at 23,802 points.
RHB Research said the latest candlestick formation, marked by a lower low and a lower high, indicated that bearish momentum remained intact. The research house expects the correction to potentially extend towards immediate support at 23,600 points, followed by the next support at 23,100 points.
The research house is sticking with the short position initiated at the close of Sept 17, when HSIF stood at 24,572 points, citing a persistently bearish technical setup. It has also revised the stop-loss level to 25,000 points to help manage trading risks.
Any rebound is expected to face selling pressure at 24,300 points, which remains the first resistance level. The revised stop-loss level of 25,000 points marks the next resistance.
RHB Research said traders should maintain a negative trading stance while the technical outlook remains bearish.
