Mid Day Market Update: KLCI Traded in Range Bound

The barometer index of Bursa Malaysia, FBM KLCI opened higher at 1,434.50 in the morning, and closed lower for the Thursday (23 June 2022) morning session at 1,430.00 point, as compared to Wednesday’s closing of 1,431.10 point.

The top five gainers of the morning session were KLK, Petronas Dagangan, Heineken Malaysia, Sime Plantation, and MPI.

While the top 5 losers were PPB, Batu Kawan, KESM Industries, Chin Teck Plantations and Panasonic Malaysia

The main index is expected to whipsaw whilst pending for fresh new leads.

WTI Crude :  Falling Back Below The 50-Day SMA Line

‘Short’ positions being maintained on the WTI Crude by RHB Research.

The WTI Crude resumed its selling momentum yesterday, retreating USD4.46 to settle at USD106.19 – breaching below the 50-day average line. The commodity opened lower yesterday at USD109.54, then fell to hit the USD101.53 low before rebounding moderately to partially recouped its intraday losses towards the close. The bearish candlestick – with a long lower shadow – signals that selling pressure is expected to remain below the 50-day average line in the medium term. Since the commodity rebounded from its USD101.53 intraday low yesterday, the immediate term selling momentum is foreseen would pause after hitting that support level, before continuing to fall lower towards the USD98.20 support. As long as the WTI Crude remains below the average line, the research house doesn’t anticipate a strong upward reversal in the coming sessions. As such, the house is sticking to its negative trading bias.

COMEX Gold:  Downtrend Continues While Remaining Below The 20-Day SMA Line

RHB Research has maintained ‘short’ positions on COMEX Gold.

The COMEX Gold struggled to reclaim above the 20-day average line yesterday as it retreated from yesterday’s peak to close below the average line. It settled USD0.40 weaker at USD1,838.40. The commodity started yesterday’s session weaker at USD1,834.90 and oscillated between the USD1,824.50 low and USD1,850.3 high, only to retreat strongly from the peak to close slightly above the opening level. The latest price action that printed a low beneath the previous day’s low suggests the bears are still in control below the average line, i.e. expecting to drive the COMEX Gold further down towards the USD1,800 threshold. This is in line with the weak RSI indicator, coupled with the “lower high” bearish structure, which indicates that the downward movement is likely to persist in the coming sessions. Hence, the research house is keeping to its bearish bias unless the momentum reverses.

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