The local bourse, Bursa Malaysia closed higher for the Thursday morning trading session. The key index, KLCI inched up 9.36 points to 1,468.41, at lunch break. Meanwhile, trading volume remained subdued with the positive market breadth i.e. 457 gainers outnumbered 335 decliners.
The FBM KLCI rose to 13 points in the morning hours and then backed away from intra-day highs as profit-taking was quick reined in amid the negative market sentiment.
WTI Crude : Negative Momentum Taking Place
Trailing-stop point triggered, RHB Research has initiated ‘short’ positions on WTI Crude.
The WTI Crude experienced strong selling pressure yesterday as it retreated USD3.62 to settle at USD115.31 – below the USD115.56 trailing stop. The commodity began the session at USD119.07. After touching the USD119.61 day high, it slipped to the USD114.60 day low before the close. The long bearish candlestick suggests the bears are in control now. As the RSI is also trending lower – indicating that the negative momentum is growing – it is very likely the WTI Crude will drift towards the USD113 level, followed by USD108.61. The correction will continue until it forms a bullish reversal candlestick near the support. Since the trailing-stop point has been triggered, hence the research house has shifted to a bearish bias.
COMEX Gold: Downside Risks Persist
The research house has continued to maintain ‘short’ positions on COMEX Gold.
The COMEX Gold staged a mild rebound yesterday, recouping USD6.10 from the previous session to settle at USD1,819.60. The commodity initially started off lower at USD1,809.70. During the US session, volatility picked up, which saw it touch the USD1,845.40 intraday high. However, the momentum softened late during the US session – it pulled back to close at USD1,819.60. The latest price action showed the bullish momentum remains weak despite the COMEX Gold attempting to chart a “higher high”. In the event the commodity climbs higher again, it will be blocked by the USD1,850 resistance. The 20-day SMA line is currently rounding lower – hence, the research analysts think the downside risk has increased. As such, bearish bias is kept.
