Maintain short positions until signs of further rebound emerge. The HSIF ended its recent session’s losing streak by handing in a 592-pt gain to close at 25,609 pts. At this juncture, we view the positive performance as a relief rebound – further positive price follow-throughs are needed in the coming sessions to signal a possible trend reversal. Furthermore, the index is still capped by the 200-day SMA line. We keep our negative trading bias.

We recommend traders stay in short positons. We initiated these at 24,920 pts – the closing level of 16 Jul. For risk-management purposes, a stop-loss can be placed above 25,665 pts.

Immediate support is revised to 25,250 pts, which was the price of 20 Jul. This is followed by the 25,000-pt round figure. Meanwhile, the immediate resistance is set at 25,665 pts, or the high of 17 Jul. This is followed by the 26,000- pt round figure.

Source: RHB Securities Research - 22 Jul 2020