Hang Seng Index Futures: Slipping Below The 20-Day SMA Line
Once again, RHB Research has maintained ‘SHORT’ positions on the HSI futures.
The HSIF gave up its position above the 20-day SMA line, retreating 305 pts to settle yesterday’s day session at 20,114 points. After starting at 20,370 points, it saw persistent selling pressure, and fell to the day session’s 19,961-point low before the negative closing. In the evening session, negative sentiment continued, with the index losing another 142 points – falling below the 20,000-point mark – and was last traded at 19,972 points.
As the index has fallen below the 20-day SMA line, it is expected negative momentum to continue pushing it lower – likely towards the 19,816-point support. If it breaches the immediate support level, then expect a further correction towards the lower support level at 19,063 points. Meanwhile, the RSI has fallen below the 50% threshold, indicating that negative momentum is getting stronger. The research house is keeping their negative bias.
WTI Crude : Mild Profit-Taking
‘Long’ positions being maintained on the WTI Crude by the research house.
The WTI Crude moved USD0.52 lower yesterday, to close at USD109.77. After opening on a neutral note at USD110.41, the black gold oscillated between USD111.43 and USD108.61 throughout the session, before partially recouping its intraday losses to close slightly below the opening level. The mild profit-taking seen yesterday (it closed lower but above the previous session’s low) showed that selling pressure is receding. As highlighted in their previous note, they expect buying pressure to re-emerge in the coming sessions. If this happens, the commodity will be ready to propel beyond the USD115.56 threshold. We will maintain our bullish trading bias, unless the stop-loss is breached.
COMEX Gold: Bullish Momentum Continues
Since trailing-stop triggered on this futures; RHB Research has initiated ‘LONG’ positions.
The COMEX Gold’s counter rebound continued yesterday, climbing above the 20-day SMA line to close at USD1,871.40. It initially started off at USD1,858.60. After setting its intraday low at USD1,853.90, it rose to touch the USD1,875 intraday high before the close. The latest candlestick’s close (USD1,871.40) was above the previous session’s high (USD1,870.40), and the “higher high” bullish pattern shows that positive momentum is gaining pace.
The bulls are eyeing the upside resistance at USD1,890. Meanwhile, if profit-taking occurs, it is expected the USD1,830 level to provide immediate support. As the COMEX Gold has broken past the trailing-stop, the research house has shifted to a positive trading bias.
