The local bourse, Bursa Malaysia ended the Monday morning trading session with 1.45% lower, tracking the performance of the regional stock markets. The FBM KLCI ceded 21.69 points to 1,472.26 from Friday’s close of 1,493.95.
With the rising inflation in the United States in 4 decades, going forward investors’ sentiment may stay in gloom as worries about further interest rate hikes and more quantitative tightening.
Hang Seng Index Futures: Momentum Slows Down; Still Above The 50-Day SMA Line
RHB Research is still maintaining long positions.
The HSIF saw momentum slowing down last Friday, declining 96 points to settle the day’s session at 21,695 points. During the evening session, tracking the bearish sentiment of US peers, the index experienced profit taking and retreated 369 points to last trade at 21,326 points. Despite selling pressure witnessed last Friday, the index has managed to keep its position above the 50-day SMA line. Observed the 20-day SMA line has crossed above the 50-day SMA line. The Bullish Crossover should provide strong downside support for the index. However, in the event the index slips below the 20-day SMA line or the 20,863-point support, expect the negative momentum to extend towards the 20,500-pt level. At this stage, the research house views the current pullback as a healthy correction within the uptrend. As such, the research house will stay on a positive bias.
WTI Crude : Mild Profit-Taking Continues
‘Long’ positions being kept by RHB Research.
The WTI Crude continued to drag slightly lower near the support level last Friday as it retreated USD0.84 to settle at USD120.67. The black gold began at USD121.46 and oscillated between the day’s high of USD122.75 and USD118.33’s day low. This saw the commodity partially recouping its intraday losses before the close. Last Friday’s small black body candlestick with upper and lower shadows represented mild profit-taking with strong buying interest above the USD119.98 immediate support. Nevertheless, since the intraday selling pressure was stronger than the buying pressure, the research house does not discount the possibility of further profit-taking below the support. The medium-term bullish outlook remains intact, as long the WTI Crude does not fall below the next support of USD115.56 – this is coupled with the RSI strength still at the 64% level. As such, the research house is sticking to our bullish trading stance.
COMEX Gold: Strong Rebound From The USD1,830 Support
The research house is maintaining ‘long’ positions
The COMEX Gold staged a strong rebound last Friday, surging USD22.70 from the previous session to settle at USD1,875.50. The commodity started off Friday’s session at USD1.850.40. Initially, it fell to the day’s low at USD1,826.50. Strong demand emerged during the US hour, lifting the commodity towards the day’s high of USD1,879.60 before the close. The latest bullish candlestick saw the commodity breach the USD1,875 resistance and head towards the next resistance at USD1,890. Also, it is observed that the RSI indicator has surpassed the 50% threshold, suggesting the bullish momentum is picking up pace again. Meanwhile, USD1,830 has been tested for at least three occasions, and is acting as a major support now. As long as the COMEX Gold continues to trade above the USD1,830 level, the research house will keep to the positive trading bias.
