The barometer of the local bourse, FBM KLCI inched up slightly and closed in positive territory at Friday midday amid a bottom-fishing in regional equities. At midday, KLCI up 5.76 points to 1,436.81. There were 409 positive counters on the market compared with 330 decliners. While, trading volume was 1.48 billion shares with value of RM753.18mil.
The positive performance of the KLCI was seen as having little impact from the release of the nation’s May CPI print, which is recorded at 2.8% year-on-year.
WTI Crude : Falling Further Towards The Immediate Support
RHB Research has maintained ‘short’ positions on WTI Crude.
The WTI Crude fell again below the 50-day SMA line yesterday, as it closed weaker by USD1.92 at USD104.27 – above the immediate support of USD101.53. The commodity opened lower yesterday at USD104.42, then oscillated between the USD102.32 low and USD107.05 high before closing near the opening level. The neutral candlestick that printed beneath the previous day’s close, suggests that the recent selling momentum that started from 14 June may be paused near USD101.53 – in line with the research / technical analysts’ expectation. However, the selling momentum may resume if it falls below the immediate resistance. It is likely to see the bearish continuation occur in the medium term as it is still trading below the 50-day average line. As such, the research analysts are sticking to their negative trading bias.
COMEX Gold: Selling Pressure Persists Below 20-Day SMA Line
While for COMEX Gold, RHB Research is retaining its ‘short’ calls.
The COMEX Gold is still struggling to move above the 20-day average line, despite testing this level during yesterday’s session (its intraday high). It closed on a negative tone, settling USD8.60 lower at USD1,829.80. The commodity saw a positive opening to the session at USD1,839.70, and attempted to move higher, touching the day’s high of USD1,848.90. Selling pressure then kicked in to reverse the yellow metal’s movement for the rest of the session – it hit the day’s low of USD1,823.50 at the close. The latest negative price action below the 20-day average line emphasises that the selling momentum below the average line remains intact, and is expected to drag the COMEX Gold down towards the USD1,800 threshold. This is coupled with the weak RSI level. The research house will keep its bearish bias, unless the momentum reverses.
