Mid Day Market Review: Bullish Momentum Gaining Traction for HSI Futures; Mild Profit Taking for WTI Crude; COMEX Gold’s Resistance Level at USD1,800

Hang Seng Index Futures: Bullish Momentum Gaining Traction

RHB Research in its technical analysis port on HSI futures has stated that it is maintaining ‘SHORT’ positions.

The HSIF climbed for a third consecutive session yesterday and reclaimed the 20-day SMA line. The index rose 651 points to settle the day session at 20,575 points and formed a bullish candlestick pattern. During the evening session, it pulled back 90 points and last traded at 20,485 points. If the bullish momentum continues, the HSIF may surpass the 20,694-point resistance and negate the Bearish Marubozu that formed on 6 May. This will lift the index higher to test the 50-day SMA line. Breaching the overhead moving average line will give an early signal that the trend is changing course northwards.

At this stage, the research house is keeping to their view that selling pressure will persist near the 50-day SMA line while holding on to their negative bias until the stop-loss mark is breached.

WTI Crude : Mild Profit-Taking Below The Resistance

While the research house has maintained ‘LONG’ positions for WTI Crude.

The WTI Crude experienced mild profit-taking yesterday as it declined USD1.80 to settle lower at USD112.40. It started the session at USD113.87. It then rose to touch the USD115.56 session high. However, sentiment turned cautious during the final part of the US trading session, and the commodity pulled back to the USD111.75 session low and closed below the opening price. The bearish candlestick suggests the WTI Crude may resort to a sideways consolidation movement in the coming sessions. It should be range-bound between the USD110.00 support and USD116.64 resistance. New trends will be formed once the black gold breaks out of either boundary. Pending a breakout, a positive bias is maintained for now.

COMEX Gold: Momentum Remains Weak

In view of the weak momentum shown by the COMEX Gold futures, the research house is maintaining its ‘SHORT’ positions.

Despite facing mild selling pressure on Tuesday, the COMEX Gold manage to record a USD4.90 gain from the previous session and settled higher at USD1,818.90. After bouncing off the USD1,800 support, the commodity started off the session at USD1,823.90. It then traded in-between USD1,834.80 and USD1,811 before closing at USD1,818.90 – below the opening point. The bearish candlestick indicates that momentum remains weak and the bears still possess the technical advantage. In the event selling pressure increases again, the COMEX Gold may retrace towards USD1,800 again. Should it climb higher, it will then meet resistance at USD1,860. Since the momentum is weak, no change to negative trading bias.

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