Maintain short positions. Last Friday, the HSIF continued to test the 24,150-pt immediate support threshold for the second time in three sessions. It reached a low of 24,151 pts before rebounding to close at 24,454 pts – a gain of 224 pts. Despite the latest positive intraday price reversal from the said support mark, it was insufficient to indicate that the correction phase - which resumed on the failed attempt to cross above the 200-day SMA line in end-August – has ended. We maintain our negative trading bias.

We advise traders to stay in short positions. We initiated these at 24,924 pts, which was the closing level of 3 Sep. For risk-management purposes, a stop-loss can be placed above 25,200 pts.

Support levels are set at 24,150 pts, the low of 7 Aug. This is followed by the 24,000-pt round figure. Towards the upside, the immediate resistance is set at 24,765 pts, followed by 25,200 pts.

Source: RHB Securities Research - 14 Sept 2020