Maintain short positions. Prior to the holiday break, the HSIF saw selling pressure taper during Tuesday’s session, rebounding 113 pts to settle the day session at 24,175 pts. It opened lower at 23,948 pts and fell to the 23,770-pt day low. Buying interest emerged near the low, and the index pared its intraday losses, rebounding to the 24,260-pt day high before the close. It retreated 43 pts during the evening session, and was last traded at 24,132 pts. The latest session saw the index print a candlestick with a long lower shadow, attempting to stage a technical rebound. If bullish momentum follows through, it may rise to test the 24,554-pt resistance level. A breach of the nearest resistance may see a counter-trend movement towards the 25,000-pt level. As the RSI is still trending below the 50% threshold, momentum may not be strong enough to sustain the upward movement. We hold on to our negative trading bias.

Traders should maintain the short positions initiated at 25,646 pts, or the close of 9 Sep’s day session. For risk management, the stop-loss is placed at 24,800 pts.

The nearest support is marked at 23,500 pts, followed by the subsequent support at 23,000 pts. The immediate resistance is pegged at 24,554 pts, or the low of 20 Aug, followed by the 25,000-pt psychological level.

Source: RHB Securities Research - 23 Sept 2021