The FBM KLCI traded marginally lower at the Friday morning session, weighed down profit-taking some banking and industrial heavyweights. The key index was almost unchanged, down by 0.40 points to 1,419.65 at the noon’s time break. Meanwhile, market breadth remained anemically positive with gainers very mildly outpaced losers at 293 to 290.
WTI Crude : Consolidating Near The 200-Day SMA Line
RHB Research has again maintained “short” positions on WTI Crude.
The WTI Crude strongly recouped almost all of its intraday losses yesterday as it closed USD0.52 weaker at USD95.78 – still above the USD92.93 support and 200-day average line. It opened at USD96.57 and briefly touched the USD97 high before falling sharply towards the USD90.56 low. Strong buying interest then emerged, which saw the commodity rebound near towards the opening level before the close. The neutral candlestick with long lower shadow indicates that strong buying pressure emerged near the 200-day average line to prevent further downsides in the immediate sessions. With that, it is expected a mild rebound in these upcoming sessions 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. Unless the momentum reverses, the research house is retaining its bearish bias.
COMEX Gold: Selling Momentum Renewed
“Short” positions being on COMEX gold.
The COMEX Gold denied Wednesday’s mild rebound after plunging USD29.70 yesterday to settle at USD1,705.80. The commodity opened at USD1,733.60 to touch the USD1,734.80 level before falling strongly for the rest of the session. It hit the USD1,695 intraday low before rebounding mildly at the close. The latest long black body candlestick signals that strong selling pressure has been renewed following the previous session’s mild rebound. That said, the negative momentum is expected to persist in the coming sessions towards reclaiming yesterday’s low of USD1,695 before falling further towards the USD1,680 level. As such, the downwards direction remains intact. Unless the momentum reverses, the research house is keeping to its bearish bias for now.
