Hang Seng Index Futures Seen Extending Gains As Momentum Strengthens
The Hang Seng Index Futures (HSIF) is expected to extend its upward bias as improving sentiment pushes the contract closer to its 20-day simple moving average, according to RHB Investment Bank Bhd.
RHB Research said the HSIF added 34 points on Thursday to finish at 25,570, after moving between an intraday low of 25,483 and a high of 25,830. The evening session saw further strength, with the futures contract surging 218 points to last trade at 25,788.
The research house noted that the price action, alongside an RSI that is turning higher towards the 50% line, indicates strengthening bullish momentum. It said a break above the short-term moving average could open the path for the HSIF to retest the 26,500 resistance, followed by 27,400.
RHB Research said, “If the index crosses above the short-term moving average, it may attempt to retest the 26,500-pt resistance. A breakout above this level would attract further momentum and pave the way for an extension towards 27,400 pts.”
On the downside, the immediate support remains at 25,000, with the next support at 24,300. As long as the index holds above the 25,000 mark, the research house said it will keep its positive trading bias.
RHB maintains its long position, which was initiated at 21,416 on 14 April, and keeps the stop-loss at 25,000 points.
