Mid Day Market Update: FBM KLCI Set for Tight Range, KLCI Up Marginally 0.04%

Bursa Malaysia ended the Tuesday (5 July 2022) morning trading session mixed, with the FBM KLCI index moved marginally higher by 0.04% lifted by heavyweights such as PetDag and P Metal.

The overall market breadth was negative with losers outnumbering gainers 367 to 303.

At 12.30 pm, KLCI was 0.45 point higher at 1,437.97.

The local bourse is expected to whipsaw as the selling pressure is going to intersperse with bargain hunting activities.

WTI Crude :  Mild Rebound After Strong Profit-Taking

RHB Research has maintained “short” positions.

The WTI Crude paused its selling momentum last Friday as it inched higher by USD2.67 to close at USD108.43 – still below the 50-day average line and recent “Bearish Engulfing” pattern. It started positively at USD106.01 but fell to hit the USD104.56 low before strong buying pressure emerged during the intraday session to reverse the direction upwards. The WTI Crude then hit the USD109.34 high before the close – still below the previous session’s high. The latest bullish candlestick coupled with the “higher low” bullish pattern, indicate the initial rebound for the commodity to reclaim above the 50-day average line in the coming sessions. Nevertheless, the bears are still in control, as it still trades below the average line. Only when the WTI Crude manages to cross above the average line and breach the USD114.05 resistance – to form a “higher high” bullish pattern – will the bias possibly turn bullish. For now, the research house is sticking to its short positions.

COMEX Gold: Struggling To Stay Above USD1,800; Downside Risks Remain

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

The COMEX Gold is extending its downwards trajectory, falling USD5.80 last Friday to close weaker at USD1,801.50. The commodity opened the session at USD1,808.10. After touching the USD1,813.60 session high, the negative momentum dragged it lower, reaching the USD1,783.40 session low. The bulls then seized the intraday low, lifting the COMEX Gold back above the USD1,800 psychological support – it closed at USD1,801.50. Despite charting a long lower shadow, it has yet to form a fresh “higher high” – suggesting the bears remain in control. As such, the commodity may stage a mild counter-trend rebound before it resumes the downside movement. For a longer timeframe, we think it likely for a correction below USD1,800 – testing the USD1,770 lower support. As both the 20- and 50-day SMA lines are trending lower now, the negative momentum should accelerate in the coming sessions. Hence, no changes to the bearish bias.

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