Maintain short positions. Amidst a risk-off sentiment, the HSIF lost 201 pts to settle the day session at 23,397 pts. It started Wednesday’s day session at 23,705 pts, testing the 23,745-pt day high before retreating to the 23,326-pt day low. After printing a bearish candlestick during the day session, the evening session saw another round of corrections, retracing 280 pts before closing at 23,117 pts. With the bears gripping the index, negative momentum may follow through to test the 23,000-pt level. A breach of the psychological level will lead to a further correction towards 22,450 pts. A technical rebound, on the other hand, would meet the resistance near 23,745 pts. As long as the resistance remains intact, and the index continues to chart a “lower high with lower low” pattern, the bearish structure will prevail. We will stick to our negative trading bias until the trailing-stop is breached.

Traders should keep the short positions initiated at 24,892 pts, or the closing level of 19 Nov’s evening session. For risk management, the trailing-stop is set at 24,200 pts.

The immediate support is moved to 23,000 pts, followed by 22,450 pts. Meanwhile, the nearest resistance is shifted to 23,745 pts – 15 Dec’s high – followed by the 24,200 pts.

Source: RHB Securities Research - 16 Dec 2021