Hang Seng Index Futures: Moving Horizontally Above The 20-Day SMA Line
RHB Research has once again maintained ‘SHORT’ positions on HSI futures.
The HSIF managed to retain its position above the 20-day SMA line despite facing mild profit-taking on Monday. After opening at 20,664 pts, it moved between 20,672 points and 20,223 points before closing at 20,419 points. During the evening session, it recouped 80 points and was last traded 20,499 points. The latest price action saw the index chart a “higher low” above the 20-day SMA line, and therefore, the bulls are technically superior to the bears. If the momentum continues, the index may break past the 50-day SMA line to travel higher. However, if the index falls below the 20-day SMA line, the selling pressure is expected to increase, with a retracement towards the 19,816-point support level. As the index is consolidating above the 20-day SMA line, the research house is sticking to their negative bias until the stop-loss is triggered.
WTI Crude : Bulls Taking a Breather
However, RHB Research is maintaining its ‘LONG’ positions on WTI Crude.
The WTI Crude retreated moderately yesterday as it fell USD2.94 to close at USD110.29 – still above the immediate support and 50-day SMA line. After opening lower at USD110.56, the black gold then fell – oscillating between the USD111.96 high and USD109.15 low before settling near the opening at USD110.29. The weaker momentum held yesterday does not form a “lower low” bearish structure. Hence, it is treated as healthy retracement. With the WTI Crude trading above the 50-day average line, coupled with the RSI at the 54% level, the buying interest may re-emerge in later sessions. If this happens, the commodity is poised to propel higher beyond the USD115.56 immediate resistance. Unless the stop-loss is breached, the research house is retaining our bullish trading bias.
COMEX Gold: Rejection At The 20-Day SMA Line
‘SHORT’ positions on COMEX Gold maintained by the research house.
The COMEX Gold’s counter rebound was blocked by the wall of the 20-day SMA line, despite rising USD5.50 yesterday to close at USD1,853.90. It gapped up to open Monday’s session at USD1,850.90. After setting a foothold at the day’s low of USD1,849.70, it rose to the day’s high of USD1,870.40. Selling pressure near the 20-day SMA line prevented the COMEX Gold from advancing further – it retraced to close at USD1,853.90. The latest price action confirms that strong resistance has formed at the USD1,860 level. If the commodity is able to break past the immediate threshold, it may extend its rebound towards USD1,890. Meanwhile, it should consolidate sideways before a fresh attempt to move upwards. The research house is keeping their negative trading bias until the commodity passes the trailing-stop.
