Bursa Malaysia narrowed its gains with the main index, FBM KLCI up 5.92 points to 1,424.61 at mid-day from Thursday’s closing at 1,418.69.
Market breadth was positive with gainers leading losers 379 to 311. While, turnover stood at 966.3 million units with trading value of RM538.44 million.
Local bourse is set for range-bound trading as the market participants are waiting for fresh new catalysts.
WTI Crude : Interim Rebound From The Strong Support
Another “short” positions being maintained by RHB Research on WTI Crude.
The WTI Crude bounced off the support level yesterday, rebounding USD4.20 to settle at USD102.73, ie below the 50-day average line level. It opened lower at USD98.22 to hit the USD96.57 intraday low before buying pressure kicked in. The WTI Crude then climbed strongly upwards towards the end of the session to hit the USD104.48 high before the close. The latest bullish candlestick emerged from the strong support of USD98.20 – the lowest mark on 11 May and also yesterday’s opening level – and was in line with the research house’s earlier expectation for the immediate term. For the medium-term period, it is expected the buying pressure above this support to be shortlived, given that the bearish patterns of “lower high” and “lower low” beneath the 50-day average line remain intact. Coupled with the weak RSI at the 41% level, the selling pressure may resume to cause the WTI Crude to fall back towards the USD98.20 support. As such, the research house is sticking to its short positions.
COMEX Gold: Selling Pressure Slowing Down
“Short’ position being maintained.
The selling pressure on the COMEX Gold tapered off yesterday as the commodity recouped USD3.20 from Wednesday’s losses to close at USD1,739.70. The precious metal opened at USD1,737.20 and moved sideways for most of the session – this was as the selling pressure failed to follow through. At one point during the US session, it rebounded to touch the USD1,748.20 session high before closing at USD1,739.70. The latest price action suggests the bulls are attempting to form an interim base after the COMEX Gold experienced two strong bearish sessions on Tuesday and Wednesday. If the commodity climbs above the USD1,770 resistance, this should improve the sentiment and rally it to rebound higher. For now, RHB Research is still retaining its bearish bias until the trailing-stop point is breached.
