Maintain short positions. Despite the HSIF starting off with a strong momentum during Monday’s session, it failed to break past the 24,200-pt immediate resistance. The index initially began at 24,209 pts and rose to test the 24,391- pt day high. After touching the intraday high in the early morning, the bears seized the rebound and started taking profit, which dragged the HSIF to its 23,930-pt day low before the day session ended. During the evening session, sentiment turned negative, with the index retreating 282 pts – it last traded at 23,735 pts. The latest session showed the bears still taking the lead, and we may see a follow-through momentum that tests the 23,600-pt immediate support. Breaching this threshold will see a correction towards December’s low at 23,259 pts. For now, as the 24,200-pt resistance remains intact, we make no changes to our negative trading bias.

We recommend traders keep to the short positions initiated at 24,892 pts, ie the closing level of 19 Nov’s evening session. For trading-risk management, the trailing-stop level is set at the immediate resistance of 24,200 pts.

The nearest support is marked at 23,600 pts and followed by 23,259 pts or 1 Dec’s low. Conversely, the first resistance remains at 24,200 pts. This is then followed by the higher resistance of 25,000 pts.

Source: RHB Securities Research - 14 Dec 2021