Mid Day Market Update: KLCI Dipped Lower

Bursa Malaysia traded lower on Tuesday morning session. At 12.30pm, the FBM KLCI index was down 2.79 points to 1,426.76 dragged by heavyweights.

Whereas on market breadth, it was negative with 393 decliners outpaced 250 gainers.

Trading volume was 948.36 million shares with total value of RM558.15mil.

Decliners were Maybank, Hong Leong Bank, Tenaga Nasional, Maxis, Axiata and IOI.

Active counters were Metronic, MMAG and MYEG.

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

RHB Research has maintained “short” positions on WTI Crude.

The WTI Crude persisted with its recent positive rebound yesterday as it climbed USD5.01 to close at USD102.60 – heading closer towards the USD105.24 immediate resistance. The black gold opened at USD97.27 and touched the USD95.85 low before reversing into an uptrend. It propelled towards hitting the USD102.80 high before the close. The strong bullish candlestick printed yesterday indicates the buying pressure is getting more intense, and is expected to persist in the coming sessions. However, the positive momentum is expected to be capped at the USD105.24 immediate resistance, whereby the selling pressure at that level will drag the WTI Crude lower in the medium term as it trades within the “lower high” and below the 50-day average line. The strong bullish momentum can only be established if the black gold manages to surpass the UD108 resistance, which is near the 50-day average line. As it is still trading way below this line, the research house is retaining its bearish bias.

COMEX Gold:  The Bears Are Still In Control

Whereas RHB Research has maintained “short” positions on COMEX Gold.

The COMEX Gold failed to stage a technical rebound despite selling pressure easing recently. It rebounded USD6.60 to settle Monday’s session at USD1,710.20. The commodity started at USD1,706.40 and jumped to the day’s high of USD1,722 during the US session. However, it failed to sustain the momentum and retreated to the day’s low of USD1,704.40 before closing at USD1,710.20. The latest price action suggests that sentiment towards the commodity remains negative, and a meaningful “higher high” bullish pattern is yet to be seen. If selling pressure increases in coming sessions, it is very likely that downward movement will continue for the commodity to retest the USD1,695 support. On the upside, 6 July’s Bearish Marubozu remains intact, and hence, it is expected that selling pressure near the upside resistance. For now, the research house is sticking to its bearish bias until the trailing stop is breached.

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