Mid Day Market Update: KLCI Reversed Yesterday’s Gain at Midday

The Malaysian bourse closed the Wednesday morning trading session weaker with the FBM KLCI ceded 21.99 points or 1.48% at 1,459.29. Leading the loss is the Telecommunication & Media Index, down 2.2% and Plantation index, 2%. The top 5 losers of the morning trading session were Nestle, PetDag, Batu Kawan, BldPlnt, and KLK.

WTI Crude :  Intraday Selling Pressure Emerged From The Top

‘Long’ positions have been kept by RHB on WTI Crude.

After attempting to climb higher yesterday, the WTI Crude reversed its direction to close in negative territory – falling USD2.00 to close at USD118.93 and breaching below the USD119.98 immediate support. The black gold started off on a positive note at USD121.09 and whipsawed between the USD123.68 high and USD116.62 low, after which it bounced off the day’s low moderately towards the close. Yesterday’s strong intraday selling pressure from the peak signals a potential downtrend reversal in the coming sessions. Hence, the medium-term bullish bias above the USD115.56 support has faded as selling pressure is likely to cause the black gold to breach below that support level. Nevertheless, the research house does not discount the possible of buying interest emerging near the support level. Until the trailing-stop – which is also the immediate support – is breached, the research house is sticking to its bullish trading stance.

COMEX Gold: The Bears Are In Control

Stop-loss mark triggered; RHB Research has initiate ‘short’ positions on COMEX Gold.

The COMEX Gold failed to retain its position above the 20-day SMA line yesterday, falling USD18.30 from the previous session to settle at USD1,813.50. Following the Bearish Engulfing pattern that formed on Monday, it started off the Tuesday session with a gap down and opened at USD1,820.90. Although the commodity rebounded to test the USD1,833.30 session high, the negative momentum dragged it towards the USD1,806.10 session low before the close. The latest price action confirmed that the bears have regained the control with the 20-day SMA line now acting as the resistance. As long as the it remains below the moving average line, selling pressure will pull the COMEX Gold lower towards USD1,800, followed by USD1,770. Since the negative momentum has triggered the stop-loss point, the research house has shifted to a bearish bias

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