Mid Day Market Update: KLCI Dipped at Noon Dragged by Profit-Taking, While HSIF Bulls Eyes Next Resistance Level 21,595

The FBM KLCI opened at 1,563.40 point today and fluctuating between 1,555.46 – 1,563.89 point. The KLCI was at 1,559.92 at lunch break, dipped about 11 points, dragged by profit-taking of heavyweights e.g. MPI, PetDag, PetGas, PChem, HLFG, PANAMY.

Hang Seng Index Futures: Strengthening Above The 50-Day SMA Line

With the bullish momentum, RHB Research is maintaining its ‘long’ positions.

Riding on the strong momentum, the HSIF’s Jun 2022 futures contract surged 402 points to settle the day session at 21,394 points – firming up its position above the 50-day SMA line. It initially opened at 20,900 points. After touching the day session’s 20,850-point low, it jumped to 21,415 points before the close. Mild profit-taking in the evening saw the index pare 260 points. It was last traded at 21,134 points. This is the first time the index has regained the 50-day SMA line since 21 Feb. If it sustains above the moving average line, it will continue to move higher towards 21,595 points. In the event that the bears decide to take profits, the 20-day SMA line is expected to provide a strong downside buffer. With the RSI indicator trending above the 50% threshold, positive price action is expected to follow through in coming sessions. As the bulls are now in charge, hence the research house is retaining their positive bias.

WTI Crude : Strong Intraday Profit-Taking

‘Long’ calls being maintained by the research house.

The WTI Crude failed to move past its immediate resistance yesterday, falling sharply from its intraday high (above the immediate resistance) to close on a negative tone. It settled USD0.40 weaker at USD114.67. The black gold opened at USD114.96 and propelled strongly towards the day’s high of USD119.98. However, buying momentum was short-lived. Strong selling pressure emerged to reverse the commodity to the day’s low of USD114.15 before the close. The ‘Gravestone Doji’ bearish reversal candlestick pattern that appeared yesterday indicates continuous selling momentum below the immediate resistance in the coming sessions. WTI Crude is expected to fall towards the USD108.61 immediate support level in the coming sessions. Nevertheless, the medium-term bullish bias remains intact above the immediate support, which is also its latest stop-loss level. Unless the stop-loss threshold is breached, the research house will stick to their bullish trading stance.

COMEX Gold: Struggling To Stay Above The 20-Day SMA Line

The COMEX Gold failed to stage an upside movement yesterday – it fell USD8.90 to settle at USD1,848.40, as it struggled to stay above the 20-day SMA line. It started off Tuesday’s session at USD1,856.50. After testing the day’s high of USD1,867.90, the commodity retreated to the day’s low of USD1,837.60 and closed at USD1,848.40 – printing a bearish candlestick. The latest price action confirmed that USD1,870 has become a strong resistance level. The commodity needs to break past the immediate threshold to extend the counter-trend rebound. Meanwhile, it will continue consolidating along the short-term moving average line until momentum picks up again. The research house is keeping their positive trading bias until the stop-loss is breached. Hence, ‘Long’ positions are maintained by the analyst.

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