Mid Day Market Review: KLCI Dipped Marginally Tracking Regional Performance; HSI Futures Consolidating with Bullish Momentum Intact

The key index FBMKLCI was down 4.97 points to 1,548.44 at the closing of first trading session of the day. Investors are buying up the defensive stocks eg. consumer staples counters like Nestle, Carlsberg, F&N, Heineken and energy stocks (Petron, PetDag), which are in the list of top 10 gainers.

Hang Seng Index Futures: A Pullback For Consolidation

RHB Research is maintaining ‘long’ positions on HSI futures.

After surging above the 50-day SMA line, the HSIF saw mild profit-taking on Wednesday, pulling back 295 points to settle the day session at 21,099 pts. It started off at 21,285 points. After touching the session’s 21,309-point high, it retraced to 21,008 points during midday and closed at 21,099 points. In the evening, the bears continued to take profit, with the index retreating 136 points. It last traded at 20,963 points. Although it experienced negative price action, the index retained its position above the 50-day SMA line – and therefore, the bullish setup remains intact. In the event that selling activities continue, it may retrace to test the 20-day SMA line. A breach of the shorter time frame moving average line will attract strong selling pressure. As the RSI is still above the 50% threshold, bullish momentum is still in play, with a healthy pullback for consolidation. Pending resumption of upward movement, the research house is holding on to their positive bias.

WTI Crude : The Immediate Resistance Blocks The Bulls Again

‘Long’ positions maintained on WTI Crude.

The WTI Crude attempted to climb above the immediate resistance again yesterday but failed, as strong intraday selling pressure took place to drag the commodity slightly below the opening level. After opening stronger, it closed a mere USD0.59 higher at USD115.26. The black gold started off at USD115.40 and propelled itself strongly towards the day’s high of USD117.87 before strong selling momentum kicked in. Later, the WTI Crude reversed to the day’s low of USD114.58 before the close. The neutral candlestick with “long upper shadow” suggests the selling pressure near the USD115.56 resistance remains strong. With that, the research house expects the commodity to reverse and fall towards the USD108.61 immediate support in the coming sessions. However, the medium-term bullish bias remains intact above the immediate support, which is also its latest stop-loss level. Looking at the medium term, RHB Research is sticking to their bullish trading stance.

COMEX Gold: Momentum Slowing Down; Testing The Immediate Support

‘Long’ positions maintained by RHB Research on this precious gold futures.

The COMEX Gold responded positively on the USD1,830 support level yesterday, rebounding from the support to close at USD1,848.70 – marginally below the 20-day SMA line (USD1,851). The commodity began Wednesday’s session at USD1,840. Early in the session, it retraced to the day’s low of USD1,830.20 and then bounced off to test the day’s high of USD1,853 before the close. The price action saw the commodity chart a “long lower shadow”, reaffirming that USD1,830 is acting as a strong support. Meanwhile, the 20-day SMA line is still trending lower, indicating that the trend remains bearish, while the commodity is undergoing a counter-trend rebound. If the USD1,830 support gives way, the COMEX Gold will resume downward movement and correct towards the USD1,800 psychological support level. For now, RHB Research is retaining their positive trading bias.

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