Bursa Malaysia ended the Wednesday morning trading session dipped lower as market participants remained on the wait-and-see mode amidst uncertainties and heightened inflationary pressure.
Market would be waiting on the Bank Negara Malaysia’s Monetary Policy Committee (MPC) meeting and the interest rate decision on Wednesday, and as expected, investors might favour banking stocks ahead of the conclusion of the MPC meeting.
The FBM KLCI shed 15.08 points or 1.05% lower at 1,425.73 at 12:30pm. (Tuesday’s closing at 1,440.81)
Overall market breadth was negative with losers thumping gainers 565 to 201, while 367 counters were unchanged, 1,090 untraded and seven others suspended. Meanwhile, trading volume was 1.2 billion units with value of RM712.87 million.
COMEX Gold: Breaching Below The USD1,800 Psychological Level
RHB Research has put out the “short” call on COMEX Gold.
The COMEX Gold’s negative momentum was at full speed yesterday – it plunged USD37.60 to close at USD1,763.90. It initially started the session higher at USD1,814.40. After touching the USD1,815.20 session high, the momentum reversed to the downside, and the commodity trended lower to reach the USD1,763 session low before the close. The latest price action saw the COMEX Gold fall below the USD1,800 psychological support. Hence, the support has become the immediate resistance. On the downside, should the negative momentum extend, the commodity may correct towards USD1,740, followed by the USD1,710 whole number. Since the RSI is now oversold, the possibility of a technical rebound is there. Any attempt to stage a rebound will test the immediate resistance. As it is moving in a “lower low”, the negative momentum should continue until the COMEX Gold forms a bullish reversal pattern at the next support. For now, the research house is sticking to a bearish bias.
WTI Crude : Strong Selling Momentum Resumes
“Short” positions being maintained by RHB Research.
The WTI Crude resumed its selling momentum yesterday as it fell sharply by USD8.93 to close at USD99.50 – breaching below the previous immediate support of USD101.53 while hitting the next support at USD98.20. It pushed off with a positive tone at USD108.80 and climbed towards the USD111.45 day high, but this was shortlived. The WTI Crude then reversed the momentum towards the negative to hit the USD97.43 low before the close. The latest long black candlestick has drawn a “lower low” bearish pattern amid the “lower high” bearish structure, signifying the downward movement for both the short and medium term. With the bears still in control, it is expected the black gold to fall further – breaching the USD98.20 immediate support before reaching the 200-day average line of USD92.47. As such, the research house is sticking to its short positions.
