RHB Investment Bank Bhd (RHB Research) has maintained its long position on the Hang Seng Index futures (HSIF) as the benchmark staged a recovery on Monday, gaining 60 points to close at 24,894 points and hovering near its 20-day simple moving average (SMA) line.
The index opened at 24,815 points before dipping to an intraday low of 24,740 points. It then rebounded to test the session high of 24,943 points, ending near the upper end of the day’s range and forming a bullish candlestick that erased the previous session’s losses. However, in the evening session, it pared some gains, retreating by 129 points to last trade at 24,765 points.
RHB Research noted that the latest price action suggests selling pressure has eased, with bullish momentum strengthening, as indicated by the upward slope in the relative strength index (RSI). Closing near the 20-day SMA line also signals that the near-term trend remains constructive.
“As long as the HSIF holds above the 23,000-point support, the recent pullback is viewed as healthy consolidation within a broader uptrend,” RHB Research said, adding that the positive trading bias remains intact in line with the prevailing bullish setup.
The research house recommended traders maintain the long position initiated at 21,416 points (closing level on 14 April), with the stop-loss threshold fixed at 23,000 points to minimise downside risks.
It pegged immediate support at 23,800 points, followed by 23,000 points, while resistance levels are set at 26,000 points and 27,000 points.
