The local bourse ended the first half of the trading higher at 1, 530.37, up marginally at 4.44 points when KLCI opened the day at 1,525.90. Market breadth remained negative, with 452 decliners vis-a-vis 335 gainers, as market participants’ mood remained cautious due to a lack of fresh new leads.
Hang Seng Index Futures: Eyeing The 22,000-Point Level
RHB has maintained ‘long’ positions on HSI futures.
The HSIF experienced a session of two halves yesterday. It initially lost 233 points during the day session to close at 21,365 points. Then, in the evening, it recouped the losses, and climbed 253 pts to close at 21,618 points. With the momentum picking up in the late evening, the index is on a path to chart a fresh “higher high” bullish pattern. Since the index hit the 20,863oin-pt support in the previous session, it has been charting “higher lows”, showing that buying pressure is building up. If the momentum sustains, it should scale higher to test the 22,000-point resistance. If it breaks past the psychological threshold, the index should record a 2-month high and improve market sentiment. On the other hand, if it retraces on profit-taking, the 20,863-point level would provide strong support. As bullish momentum is still in play, positive bias is retained.
WTI Crude : Re-Attempting To Hit The Resistance
Th research house is keeping its ‘long’ positions on WTI Crude.
The WTI Crude re-attempted to move higher yesterday – it hit the immediate resistance to close USD0.91 higher at USD119.41. The black gold started off in an elevated position at USD119.10 and then whipsawed between the day’s high of USD120.36 and USD117.14 day’s low, where it rebounded strongly from the low towards slightly above the opening level at the close. The mild bullish momentum near the resistance level suggests that Monday’s profit-taking has been eased by the buying pressure. The WTI Crude is expected to continue trading sideways near the USD119.98 immediate resistance before possibly surpassing above that level. Supported by the strengthening of the RSI towards the 65% threshold, the buying interest will accelerate in the medium term. As such, the research house is sticking to its bullish trading bias.
COMEX Gold: Moving Horizontally Along The 20-Day SMA Line
“Long” positions on this precious metal futures.
The COMEX Gold continued moving horizontally yesterday, despite rising USD8.40 to close at USD1,852.10. The commodity started Tuesday’s session at USD1,843.50. After moving between USD1,858.20 and USD1,838.50, it closed marginally above the 20-day SMA line. The latest price action confirms our view that the commodity is undergoing a consolidation phase, and should be range-bound between USD1,830 and USD1,875. A breach of either boundary would see the formation of a new trend. To resume the upside movement, the RSI indicator should cross above the 50% threshold. Pending a breakout from the consolidation zone, RHB Research is holding on to a positive trading bias.
