Bursa Malaysia ended the Thursday morning trading session mixed, with the benchmark index FBM KLCI rose 3.58 points to 1,414.90 from Wednesday’s close at 1,411.32. The barometer index is expected to trade in range bound as the US is going to announce their inflation. Sentiment is expected to be cautious and investors would be staying on the sideline.
Overall market breadth was negative with losers outpacing gainers 391 to 276.
The top 5 gainers are MPI, COMPLET, MISC, Carlsberg, Hartalega.
While top 5 losers are Nestle, Chintek, KLK, F&N, Petronas Dagangan
WTI Crude : Selling Pressure Pauses Near The 200-Day SMA Line
RHB Research has continued to maintain short positions on this crude futures.
The WTI Crude’s bearish momentum took a breather yesterday as the commodity rebounded from its intraday low to close mildly positive by USD0.46 at USD96.30 – just above the USD92.93 support and 200-day average line. It opened at USD95.89 and whipsawed between the USD93.67 low and USD97.96 high before retreating from its peak towards the close. The neutral candlestick printed after the strong selling pressure in the previous session indicates the bears are taking a breather near the support level – this is as strong buying pressure emerged near the 200-day average line. It is expected a mild rebound in the immediate session before selling pressure resumes to break the 200-day average line – this is because the WTI Crude is still trading within the “lower low” and “lower high” bearish pattern. This bearish outlook is also supported by the weak RSI at the 36% level. As such, the research house is retaining its bearish bias.
COMEX Gold: Mild Rebound From The Immediate Support
“Short” positions are being maintained by the research house.
The COMEX Gold staged a mild rebound from the USD1,710 immediate support, climbing USD10.70 from the previous session to close at USD1,735.50. The commodity initially started off at USD1,723.60 and fell to the USD1,704.50 day low. During the US session, strong demand emerged, lifting the COMEX Gold towards the USD1,744.30 day high before closing in positive territory. The latest long lower shadow indicates that strong buying interest exists at the USD1,710 immediate support. In the event the rebound extends, it should climb higher to test the USD1,751.70 and USD1,770 resistances. Since the RSI is at oversold level now, the technical rebound might be very likely. Despite seeing an immediate-term rebound, the commodity still trades below the 20-day SMA line and has yet to chart a “higher high”. As such, the bearish structure still remains intact. Hence, the research house is keeping to our bearish bias for now.
