Bursa Malaysia ended at morning session lower on Wednesday. At 12:30pm, the barometer index shed 10.74 points or -0.74% to 1,447.16 from Tuesday’s closing 1,457.18.This is line with the performance of regional markets are also trading on a low trend.
The main index is dragged by the some of heavyweights, for instance, the top 5 losers of the morning session are MPI, KLK, Nestle, PetDag, HLBANK.
WTI Crude : Bears Taking a Breather Near The 50-Day SMA Line
RHB Research is keeping its ‘short’ positions on WTI Crude.
The WTI Crude bounced off the 50-day average line yesterday, adding USD1.09 to settle at USD110.65. The commodity began the session higher at USD110.58, then oscillated between the low of USD110.13 and high of USD112.47 before retracing from the peak towards the opening. The neutral candlestick with a long upper shadow signals that the buying momentum yesterday might be shortlived – since the “lower high” bearish structure remains intact. Hence, it is expected the immediate term selling pressure to persist beneath the 50-day average line towards the USD108.25 support, in the coming sessions. Nevertheless, if it manages to sustains above the average line, the medium term uptrend may still be intact. Capitalising on the short-term sentiment, the research house is sticking to its negative trading bias.
COMEX Gold: Consolidating Below USD1,850 With Downside Risk
‘Short’ positions being maintained on COMEX Gold by RHB Research.
The COMEX Gold’s momentum is getting weaker after its rebound was rejected by the USD1,850 resistance. The commodity started Tuesday’s session at USD1,840.60. After trading within a tight range of USD1,848.40 and USD1,830.70, it closed at USD1,838.80. The latest price action showed a “lower high” and “lower low” bearish candlestick pattern. For the immediate term, the COMEX Gold will resort to sideways consolidation before launching a fresh attempt to test the USD1,850 immediate resistance. However, based on the RSI indicator – and with the 20-day SMA line now acting as overhead resistance – the momentum is weak, and a continuation of downside movement is likely, post consolidation. Hence, the research house is keeping its bearish bias until the stop-loss is triggered.
