RHB Investment Bank has a negative outlook on the Hang Seng Index Futures (HSIF) after it breached the crucial 23,000-point support level, indicating increasing bearish momentum. On Thursday, the index fluctuated between 23,206 and 22,510 points, ultimately closing at 22,798 points. The downward trend is further evidenced by a declining RSI. Despite the potential for a short-term rebound near the 50-day simple moving average (SMA), resistance is anticipated at the 20-day SMA. RHB has closed long positions initiated at 20,840 points and opened a short position at 22,798 points, with support at 22,000 points and resistance at 24,000 points.
RHB Investment Bank (RHB) has revised its outlook for the Hang Seng Index Futures (HSIF) to a negative stance after its significant drop below the crucial 23,000-point support level, which indicates an increasing bearish trend.
On Thursday, the index began at 23,206 points, briefly touching an intraday peak of 23,261 points before encountering considerable selling pressure. This caused it to fall to a low of 22,510 points, ultimately closing lower at 22,798 points.
The recent trading activity reflects a distinct change in market sentiment, corroborated by the RSI showing a downward trend. Given the prevailing bearish momentum, the HSIF could attempt a minor rebound from the 50-day simple moving average (SMA). However, any potential gains are likely to be limited by resistance at the 20-day SMA. A close below the 50-day SMA could lead to increased downward movement, possibly heading towards the 22,000-point mark.
Considering this technical breakdown, RHB has exited its long positions—initially taken at 20,840 points on 4 February—following the breach of the 23,000-point support level. A new short position has been initiated at 22,798 points, aligning with the closing level on 4 April. To mitigate risk exposure, RHB has established a stop-loss level at 24,000 points.
With this trend reversal, RHB now identifies immediate support at 22,000 points, followed by 20,000 points. Resistance levels are designated at 24,000 points and then at 25,000 points.