Mid Day Market Update: KLCI Subdued Due To Profit Taking

The local bourse, Bursa Malaysia remained subdued on Tuesday’s morning trading session (June 28), the barometer index FBM KLCI was down 2.52 points( or -0.18%) at 1,435.60 ( compared with Monday’s closing of 1,438.12 point).

The subdued index was due to profit-taking, led by technology and healthcare counters. Market breadth was negative with losers outnumbers gainers 490 to 262.

The local bourse’s sentiment is expected to remain cautiously optimistic as foreign selling continued to decline.

WTI Crude :  Attempting To Reclaim Above The 50-Day SMA Line

RHB Research is retaining “short” positions on WTI Crude.

The WTI Crude persisted with its positive rebound for second consecutive session yesterday, edging up USD1.95 to close at USD109.57 – hitting the 50-day average line during the intraday session. It started the session at USD107.22 and then fell towards the day’s low of USD105.60. Buying pressure kicked in at the bottom, which uplifted the WTI Crude – it moved upwards to hit the USD110.54 intraday high before retracing mildly at the close. The two consecutive bullish candlesticks reaffirm the immediate-term rebound from the recently held USD101.53 immediate support. Nevertheless, the medium-term bearish bias remains intact, as the black gold is still trading below the average line and has not yet formed a “higher high” bullish structure. It is expected strong selling pressure near the USD112.47 immediate resistance. The research house maintains its negative trading bias until momentum picks up to breach the stop-loss threshold.

COMEX GoldNegative Momentum Is Getting Stronger

“Short” positions being maintained on COMEX Gold by RHB Research.

Yesterday, the COMEX Gold gave up its intraday gains and retraced USD5.50 to close at USD1,824.80. The commodity initially gapped up to open at USD1,839.60. After touching the USD1,842.80 intraday high, the momentum reversed towards the day’s low of USD1,821.80 ahead of the close. Since touching USD1,861.50 on 17 Jun, the commodity has been in correction mode, charting “lower highs” and “lower lows”. If the negative momentum continues, the COMEX Gold may correct towards USD1,800, followed by USD1,770. It is observed that the 20-day SMA line is now trending lower, placing additional downward pressure on the commodity. As the bearish setup is getting stronger, no change to negative bias.

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