Bursa Malaysia ended the Wednesday morning trading session in positive territory taking cue from the regional bourses and overnight Wall Street rally. Asian equities traded on positive note following a risk-on mode on Wall Street overnight. Also, investors are waiting for China’s Loan Prime Rate (LPR) announcement today. It is expected that Beijing will give the market certain boost to spur the property and economy.
The FBM KLCI rose 7.71 points to 1,436.47 vis-a-vis Tuesday’s closing of 1,428.76.
Meanwhile, market breadth remained positive on the broader market with gainers outnumbered losers 525 to 238.
Trading volume stood at 1.41 billion units valued at RM639.64 million.
WTI Crude : Firming Up The Short-Term Rebound
short positions is being maintained by RHB Research on WTI Crude.
The WTI Crude printed its third consecutive session of positive rebounds yesterday as it climbed USD1.62 to close at USD104.22 – getting closer to hitting the USD105.24 immediate resistance. The black gold opened at USD102 and fell to the USD99.85 low before reversing upwards. It climbed strongly until the end of the session to hit the USD104.46 high. The bullish “Three White Soldiers” reversal candlestick pattern suggests the buying pressure above the 200-day average line is expected to stay – at least in the coming sessions. However, since the WTI Crude is still trading below the 50-day average line – and the USD105.24 immediate resistance too – we expect it to trade sideways between the USD105.24 resistance and USD95.85 support in the immediate term. For the medium term, the downward movement below the 50-day average line remains intact. Following the medium-term outlook, unless the trailing-stop mark is breached, no change to bearish bias.
COMEX Gold: No Sign Of Rebound Despite Being Oversold
Maintain short positions.
The COMEX Gold’s momentum remains weak, and it is yet to stage a technical rebound despite the RSI showing that the commodity is trading in the oversold region. It started yesterday’s session at USD1,725.20. After trading between USD1,734.30 and USD1,720.70, it closed at USD1,728.10. The lacklustre performance suggests that the bulls remain at their weakest state. The commodity attempted to move higher yesterday, but is yet to chart a fresh “higher high”. As such, the bears remain firmly in control, and the commodity may see another leg on the downside to test the USD1,700 psychological support. Meanwhile, as momentum is weak, it is expected the commodity to continue trading below the USD1,750 resistance in the coming sessions. The research house is keeping its bearish bias until the momentum changes or the trailing-stop is breached.
