Mid Day Market Update: KLCI Trading in Range Bound, Propped by Plantation

Bursa Malaysia has closed the Thursday morning trading session mixed, with the barometer index moved slightly higher by 0.16% which was propped by plantation sector.  

The FBM KLCI had climbed 2.22 points to 1,423.07 at the end of the morning session (Wednesday’s closing 1,420.85).  

Market breadth was dominantly negative with losers outnumbered gainers 421 to 257. Turnover transacted was 1.1 billion units worth RM638.56 million.

WTI Crude :  Bears Still Dominate

RHB Research has maintained “short” positions.

The WTI Crude fell lower yesterday – it closed USD0.97 lower at USD98.53, partially recouping its intraday losses to close just above the USD98.20 immediate support. The commodity opened on a positive tone at USD100.36 to hit the USD102.14 intraday high before the selling momentum kicked in. The WTI Crude then fell towards the end of the session to hit the USD95.10 low before rebounding moderately at the close. The latest black body candlestick with long lower shadow – following the previous session’s “long black” body candlestick – suggests the medium-term selling pressure remains intact. This is despite the immediate-term buying pressure observed at the USD98.20 immediate support during yesterday’s late evening session. It is expected the buying pressure above this support level to be shortlived, as the selling pressure will resume to breach below that level towards the 200-day SMA line of USD92.60. As such, RHB Research is sticking to its short positions.

COMEX Gold:  Pounding Down To a 9-Month Low

The research house is retaining “short” on COMEX Gold.

The selling pressure on the COMEX Gold extended yesterday, as it plunged USD27.40 to settle weaker at USD1,736.50 – recording a fresh 9-month low. After opening at USD1,764.20, the commodity did a rebound to test the intraday high at USD1,771.50. However, sentiment was weak and selling pressure dragged it towards the USD1,730.70 day low before it closed on a multi-month low. The latest “lower low” bearish pattern reaffirmed the bears are fully gripping the precious metal – a correction extension should see the COMEX Gold retrace towards USD1,710, followed by USD1,680. Looking at the RSI indicator, the commodity is trading at oversold levels now. As it is also trading far away from the 20-day SMA line, there is a possibility of seeing a technical rebound in the coming sessions – testing the USD1,770 resistance. Before a bullish reversal candlestick is seen, the correction should still be in play. Hence, no change to the bearish bias for now. 

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