Maintain short positions. The HSIF rebounded 297 pts to settle at 28,775 pts. The index initially started the session at 28,490 pts before touching the day’s low at 28,283 pts. However, selling pressure eased during midday, where it climbed towards the 28,977-pt day high and closed at 28,775 pts. In the evening, the mild bullish momentum continued to lift the HSIF towards 29,112 pts after the session high of 29,117 pts. The index remains indecisive and is gyrating at 29,000 pts, which acts as a significant level in conjuction with the 50-day SMA line. Failure to reclaim the 29,000-pt territory will see the HSIF falling back into the consolidation zone between 28,370 pts and 28,000 pts. Since the 29,500-pt resistance level is intact, and the index has yet to form a “higher high” pattern, we maintain our negative trading bias.

We recommend traders maintain the short positions initiated at 30,077 pts, or the closing level of 22 Feb. For riskmanagement purposes, the trailing stop is set at 29,500 pts.

The immediate support is unchanged at 28,370 pts, followed by 28,000 pts. Towards the upside, the immediate resistance is sighted at 5 Mar’s high of 29,276 pts and followed by 29,500 pts.

Source: RHB Securities Research - 10 Mar 2021