The FBM KLCI opened at 1,538.74 and closed at 1,530.49 at mid-day. Dropped 7.51 points or -0.49% for the first session of the day, dragged by heavyweights such as MPI, KLK, F&N, Nestle.
Hang Seng Index Futures: Bullish Momentum Renewed
RHB Research has maintained ‘long’ positions on HSI futures on its bullish momentum/ bullish bias.
The HSIF saw strong buying interest on Monday, surging 654 points to settle the day session at 21,598 points. It began Monday’s session at 21,235 points. After touching the day session’s 20,863-point low, it progressed to the day session’s 21,614-point high before the close. In the evening, mild profit-taking saw the index retrace 123 points. It was last traded at 21,475 points. Although the index experienced mild selling pressure, we deem the bulls as still in control. The RSI is trending above 50%, suggesting a follow-through of positive price action in coming sessions. Amidst strong momentum, RHB Research expects an acceleration towards 22,000 points, followed by the 22,535-point resistance. Meanwhile, if profit-taking occurs, both the 50-day and 20-day SMA lines will provide strong support. With the bullish momentum renewed, the research house makes no change to our positive bias.
WTI Crude : Profit-Taking From The Top
Keeping ‘long’ positions on WTI Crude.
The WTI Crude took profit yesterday after failing to surpass the immediate resistance. Despite hitting the intraday high, it reversed and settled USD0.37 weaker at USD118.50. The black gold started off higher at USD120.82, but barely touch the day’s high at USD120.99 before strong selling momentum kicked in to drag the commodity towards the day’s low of USD117.63 – it then rebounded mildly at the close. The bearish candlestick that appeared from the immediate resistance depicts the initial profit-taking activities following the recent uptrend. RHB Research expects the WTI Crude to drag further towards the USD115.56 immediate support before trading sideways between the USD119.98 resistance and USD115.56 support. Since the RSI is still hovering at above the 60% level, the bullish momentum remains intact in the medium term. Hence, the research is sticking to a bullish trading stance.
COMEX Gold: Still Consolidating Near The 20-Day SMA Line
‘Long’ positions maintained on COMEX Gold.
After Thursday’s strong rebound, the COMEX Gold saw two consecutive sessions of correction. It retraced USD6.50 to close at USD1,843.70 yesterday. Despite recent selling pressure, it retained its position above the USD1,830 support level. As long as the COMEX Gold continues to trade above the immediate support, it should see sideways consolidation along the 20-day SMA line. The commodity should resume the counter-trend upside movement post consolidation. A fall below the USD1,830 threshold, on the other hand, would indicate the end of the counter-trend rebound phase, and see another correction towards the USD1,800 psychological level. The rebound will see resistance at USD1,875. As the counter-trend rebound phase remains valid, the research house is keeping their positive trading bias.
