Mid Day Market Update: HSI Futures with Buying Pressure at 20,000 Pt Level; WTI Crude Seen Uptrend Momentum; COMEX Gold Staging a Rebound

Hang Seng Index Futures: Bouncing Off The 20,000-Pt Level

RHB Research has maintained ‘short’ positions on the HSI futures.

Despite facing selling pressure, the HSIF managed to bounce off the 20,000-point psychological level. The index initially retraced 466 points to settle the day session at 20,020 points. During the evening session, it rebounded 397 points and was last traded at 20,417 points. The latest price action confirms that buying pressure exists near the 20,000-point level.

However, in the event that the 19,816-point immediate support level gives way, it is expected a correction towards May’s low of 19,063 points. The bulls have to break past the 20,694-point resistance to extend the rebound. As the RSI is still hovering below the 50% threshold, it is likely that the index will be moving sideways between 20,694 pts and 19,816 pts. Pending a breakout movement, the house is currently sticking to a negative bias.

WTI Crude : Set To Propel Northwards

‘LONG’ positions is being retained by the research house.

The WTI Crude recovered from its recent pullback after rebounding strongly from the intraday low to reclaim above the USD110.00 threshold yesterday – adding USD2.62 to settle at USD112.21.  It started weaker at USD109.09 and then fell strongly towards the USD105.13 low before buying pressure kicked in. The positive sentiment then propelled the commodity northwards, as it jumped strongly towards the USD112.62 session high prior to the close. It printed a bullish candlestick with long lower shadow following the recent pullback, which suggests the uptrend momentum is set to be seen in the coming sessions. As the WTI Crude has rebounded strongly from yesterday’s intraday low, we see strong buying pressure at above the 50-day average line. Supported by a stronger RSI pointing towards the 60% level, the research house is maintaining its bullish trading bias.

COMEX Gold: Staging a Counter-Trend Rebound

Maintaining ‘short’ positions on this commodity futures, as RHB Research put in its technical analysis.

The COMEX Gold staged a strong rebound yesterday, rising USD25.40 to settle at USD1,847.80. The commodity began the session at USD1,821.30. After setting a foothold at the day’s low of USD1,814.90, it climbed to test the day’s high of USD1,854.50 before closing at USD1,847.80 – printing a fresh “higher high” bullish pattern. Amidst the renewed momentum, the COMEX Gold bulls are eyeing the 20-day SMA line. A breach of the USD1,860 resistance level would open the doors for an extension towards USD1,890. At this stage, it is believed the selling pressure would emerge near the 20-day SMA line. Thus the research house is holding on to their negative trading bias until the trailing-stop is breached.

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