The main index of Bursa Malaysia, FBM KLCI opened at 1,443.30 this morning and closed the morning trading session at 1449.71. To recap, yesterday’s closing was at 1441.24, the lowest point in 4-year period. This can be seen as technical rebound from the lowest point. While the top 5 gainers of the day are Nestle, PetDag, DLady, MPI, PetGas. Obviously, this can be interpreted as dip-buying as those gainers are defensive players with sound fundamentals and strong cash flow positions.
WTI Crude : Selling Pressure Resumed
RHB Research keeps ‘short’ positions.
After taking a breather last Thursday, the WTI Crude resumed its downward movement last Friday, falling sharply towards the 50-day average line and losing USD8.03 to settle at USD109.56. The commodity began the session lower at USD117.08. It then attempted to move higher as it hit the intraday high at USD118.97 before falling sharply towards the end of the session – touching the day’s low at USD108.25. The long black body candlestick suggests the bears are back in control, as the WTI Crude has formed another “lower low” bearish structure – in line with our earlier expectation. As long as it maintains above the 50-day average line, we remain positive on the medium-term outlook. However, the immediate term bearish momentum may likely to persist towards breaching the average line, before heading towards the next support at USD105.13. Riding on this short-term sentiment, the research house is keeping its negative trading bias.
COMEX Gold: Still Blocked By The USD1,850 Level
‘Short’ positions being maintained by RHB Research.
The COMEX Gold’s recent rebound was blocked by the USD1,850 resistance level – the commodity closed lower at USD1,840.60. It started last Friday’s session at USD1,859.30. After touching the session’s high of USD1,861.50, it retreated to the session’s low of USD1,836.10 and closed at USD1,840.60. The negative price action reaffirmed our view that strong selling pressure exists at the USD1,850 resistance level. As the Bearish Marubozu remains intact – suggesting that the bears remain in control – we expect the commodity to consolidate sideways before climbing again. For now, RHB Research is retaining its bearish bias until the stop-loss is breached.
