Hang Seng Index Futures: Struggling To Stay Above The 20-Day SMA Line
RHB Research is maintaining ‘SHORT’ positions on HSI futures.
The HSIF reclaimed the 20-day SMA line last Friday, rising 592 points to settle at 20,612 points. Although the index then gave up 302 points during the evening session, it still last traded at 20,310 points, i.e. a level above the 20-day SMA line. The HSIF also recently found its interim base at the 19,816-point support, retaining its position above the 20,000-point psychological level. If the bullish momentum continues, the index may break past the 50-day SMA line to travel higher.
However, at this stage, the research house still believes selling pressure should persist near this line. The bears will not easily give up the 21,216-point resistance. In the event the buying pressure eases off, the HSIF will retrace towards the immediate support – this is followed by the lower support located at 19,063 points. The analyst’s is holding on to a negative bias until the upside stop-loss point is triggered.
WTI Crude : The Bullish Momentum Is Still Intact
While, for WTI Crude futures is maintained ‘LONG’ positions by RHB Research.
The WTI Crude continued to edge higher last Friday following Thursday’s rebound, as it climbed USD1.02 to close at USD113.23 – on track to form a fresh “higher high” bullish pattern in the coming sessions. Despite starting weaker at USD111.45 – to then touch the USD110.85 mark – the black gold rebounded strongly towards the end of the session, where it hit USD114.04 before the close. The two consecutive sessions of bullish momentum following the recent pullback suggests the uptrend movement is expected to persist towards hitting the USD115.56 resistance – in line with the research house’ s previous note’s expectation. As the RSI continues to point higher towards the 60% level, we retain our bullish trading bias.
COMEX Gold: Eyeing To Extend The Counter-Trend Rebound
For COMEX Gold futures, ‘SHORT’ positions maintained by the research house.
After a strong rebound on Thursday, the COMEX Gold took a breather on Friday, inching USD0.60 higher to close at USD1,848.40. The commodity started off at USD1,847.40. After trading in-between USD1,854 and USD1,837.30, it closed marginally higher at USD1,848.40. The latest price action shows the bulls still have a technical advantage.
If the bullish momentum continues, the COMEX Gold should extend the counter-trend rebound towards the 20-day SMA line. Breaching the overhead resistance will see the commodity moving towards USD1,890. For now, the research house expects strong selling pressure to emerge near the USD1,860 resistance. Hence, it is keep its negative trading bias until the COMEX Gold breaks past the trailing-stop point.
