Mid Day Market Update: HSI Futures’ Bulls Knocking on Resistance; WTI Crude Poised for Charging Higher; COMEX Gold Consolidating Sideway

Hang Seng Index Futures: Knocking On The Door Of The Immediate Resistance

RHB Research has reiterated its ‘short’ position short on HSI futures.

The HSIF saw strong upside movement during the extended trading hours, attempting to break past the overhead resistance of the 50-day SMA line. The index initially dipped 70 points to settle the day session at 20,051 points. In the evening session, it tracked its US peers’ positive sentiment, jumping to the session’s 20,683-point high, and was last traded at 20,670 points. With bullish momentum gaining pace again, the bulls will likely attempt to cross the 20,694-point resistance level. A breach above the 50-day SMA line should attract further buying pressure to lift the index higher. However, if the index retraces to fall below the 20-day SMA line, it will resume the downside correction. Unless the index breaks past the 50-day SMA line, the research house is holding on to their negative bias.

WTI Crude : Poised To Climb Higher

‘Long’ positions is being maintained by the research house.

The WTI Crude rebounded from a sideways direction yesterday as it jumped USD3.76 to close at USD114.09 – the highest close of the past eight sessions. The black gold opened at USD110.69 and propelled northwards throughout the session, which saw it hit the USD114.83 high before the close. The bullish momentum suggests the buying interest on the commodity is getting obvious – and that it will resume its uptrend movement and surpass the USD115.56 immediate resistance. With the RSI pointing northwards near the 60% level, this solidifies the positive bias in the coming sessions. On that basis, the analysts are sticking to their bullish trading stance.

COMEX Gold: Consolidating Near The 20-Day SMA Line

While for COMEX Gold, the research house has called for ‘long’ positions.

The COMEX Gold staged a mild rebound yesterday, attempting to climb above the 20-day SMA line. It started Thursday’s session at USD1,857.90. At one point, it fell to the day’s low of USD1,842.50. A strong rebound during the final hours pared its intraday losses to close at USD1,853.90 – marginally below the 20-day SMA line. The latest candlestick with a long lower shadow showed that the bulls are not giving up yet, and the commodity is still undergoing a counter-trend rebound. With the RSI falling below the 50% threshold, the momentum is moderating, and should see sideways movement for consolidation. If momentum picks up again, the bulls may eye the USD1,875 resistance. For now, positive trading bias is kept until the stop-loss is triggered.

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