HSI Futures
RHB Research has maintained ‘SHORT’ positions on HSI futures. The HSIF extended its correction yesterday, plummeting 537 points to settle the day session at 19,232 points. The index began the session at 19,383 points. After rebounding to the 19,607-point intraday high, it retreated in the afternoon, reaching the 19,213-point day low before the close. Selling pressure continued to drag the HSIF lower during the evening session, as it fell 106 points and last traded at 19,126 points.
Amidst the bearish momentum, the index may test the 19,000-point support. Falling below the immediate threshold will attract further selling pressure, and the HSIF will correct towards the YTD low located at 18,134 points. In the event the bulls attempt a rebound, the 20,300-point level is seen by the analyst, as strong resistance. Furthermore, both the 20- and 50-day SMA lines are trending lower, strengthening the bearish setup. As the index is still undergoing a correction phase by charting “lower highs” and “lower lows”, no change to the analyst’s negative bias.
WTI Crude
Again RHB Research is maintaining its ‘SHORT’ positions on WTI Crude. The WTI Crude recouped all its intraday losses yesterday as it rebounded USD0.42 stronger to USD106.13 – it retained above the 50-day average line. The commodity opened mildly lower at USD105.63 before falling sharply towards the USD102.66 low. Buying pressure then emerged to bounce the black gold strongly off northwards. The WTI Crude then hit the USD107.37 intraday high before retracing moderately towards the close.
The white body candlestick following the recent “bullish engulfing” pattern formation signifies that the buying momentum is above the average line – supported by the RSI maintaining at the 52% level. Nevertheless, the bullish bias can only be firmed if the commodity manages to close above the USD110.00 stop-loss mark, forming a “higher high” bullish structure. Until this stop-loss point is breached, negative trading bias on is maintained.
COMEX Gold
THe research house is maintaining ‘SHORT’ positions on this commodity futures. The COMEX Gold experienced a fresh round of selling yesterday, retreating USD29.10 and closing weaker at USD1,824.60 – breaching below the USD1,825 support. The commodity started off the session at USD1,852.30. After touching the USD1,858.80 session high, the momentum reversed, which saw it fall to the USD1,820.10 session low before closing with a long bearish candlestick.
The negative price action affirms that the bears remain in control, as there is no sign of a bullish reversal pattern yet. As the COMEX Gold has charted a fresh “lower low”, hence it is expected that the negative momentum to follow through towards USD1,800, where the bulls should stage a rebound near the psychological support. As the commodity is still moving lower amid the correction phase, negative trading bias is maintained.
