Mid Day Market Update: KLCI Traded Mild Higher Taking Cue of Wall Street Performance

Bursa Malaysia ended Monday morning session with a slight uptick with the FBM KLCI up 0.62 point to 1,419.06 from Friday’s closing,1,418.44.

The barometer index opened 2.45 points higher at 1,420.89. Whilst, overall market breadth remained positive with gainers led losers 369 to 350. Trading volume stood at 1.43 billion trading valued at RM540.16 million.

While the FBM KLCI might be seen as traded higher in the early session on Monday taking cue from the performance of US stocks rose on Friday, pending for its positive momentum to challenge immediate resistance.

WTI Crude : Initiates Rebound Above The 200-Day SMA Line

RHB Research’s technical report on WTI Crude (dated July 18) and stated its calls on “short” positions.

The WTI Crude rebounded last Friday following Thursday’s late buying interest, as it climbed USD1.81 to close at USD97.59 – still way below the USD105.24 immediate resistance. The black gold opened at USD96.39 and oscillated between the USD94.57 low and USD99.03 high, which saw it retreating from the intraday peak towards the close. The bullish candlestick that closed above the previous session’s high from the bottom suggests that, despite the immediate-term buying pressure possibly persisting, it will be shortlived. This is because the WTI Crude is still trading within the “lower high” and “lower low” bearish structure. Since strong buying activities are seen near the 200-day average line, the commodity may move sideways amid the mild rebound in the coming sessions. That said, the selling pressure will then emerge in the later sessions to drag the WTI Crude beneath the long-term average line. As such, the research house has retained its bearish bias.

COMEX Gold:  Attempting To Breach Below The USD1,700 Psychological Level

“Short” calls being maintained on COMEX Gold by RHB Research.

The COMEX Gold continued its downward movement last Friday, declining USD2.20 to settle at USD1,703.60 – on the verge of breaching below the USD1,700 level. After a strong bearish session on Thursday, the commodity started off Friday at USD1,708.20. After trading in-between USD1,696.60 and USD1,714.20, it closed below the opening price at USD1,703.60. The latest bearish candlestick suggests the sentiment remains negative and the COMEX Gold is on track with its downwards movement. In the event the negative momentum follows through, it will breach below the USD1,700 psychological level. On the upside, if the commodity stages a rebound, it may climb towards USD1,751.70, but it is expected strong selling pressure to exist at the immediate resistance. Since it has yet to form a bullish reversal candlestick, the correction will continue until the COMEX Gold hits a strong support. Hence, no changes to bearish bias.

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