Hang Seng Index Futures: Counter-Trend Rebound Persists

The Hang Seng Index Futures (HSIF) experienced a notable climb on Tuesday, closing at 17,674 points and eyeing a potential breakout above the 17,700-point resistance level. According to a recent update from RHB Retail Research on September 19, the index began the day at 17,450 points, peaked at 17,744 points, and ended at 17,674 points.

This session marked a significant achievement for the HSIF, as it managed to surpass the 20-day Simple Moving Average (SMA) line. Currently, the 50-day and 20-day SMA lines are serving as key downside supports for the index.

The bullish momentum is likely to continue if the index maintains its position above these moving average lines. However, a strong selling pressure is anticipated if the HSIF approaches the 18,000-point mark, which is viewed as a significant resistance level.

Despite the current rebound, the market sentiment remains cautious with a negative bias until the 18,000-point resistance is breached. RHB advises traders to retain short positions initiated on September 9, when the index was at 17,154 points, while suggesting a stop-loss threshold at 18,000 points to manage potential risks.

Support levels are identified at 17,000 points and further at 16,500 points. On the resistance front, immediate resistance is noted at 17,700 points, followed by the crucial 18,000-point barrier.

As the HSIF continues its rebound, traders are advised to monitor these key levels closely to navigate the ongoing market dynamics effectively.