Mid Day Market Update: FBM KLCI Mildly Negative Ahead of FOMC Meeting

Bursa Malaysia traded in range bound at midday in the absence of fresh leads. The morning session ended at 12.30pm, with the FBM KLCI down 0.91 points to 1,464.89 from last Friday’s closing 1,465.8.

Overall market, decliner outpaced gainers 500 to 236.

Turnover printed at 1.09 billion units, valued at RM529.68 million.

It is expected that FBM KLCI’s gains might be traded in range bound ahead of the upcoming Federal Open Market Committee’s meeting outcome.

WTI Crude : Falling Towards The 200-Day SMA Line

RHB Research has once again maintained short position on WTI Crude.

The WTI Crude continued to fall towards the 200-day average line on Friday, declining USD1.65 to close at USD94.70 – blocked by the 200-day SMA line at USD94.12. The black gold opened at USD96.51 and struggled to move up after hitting the high of USD97.95. It reversed its direction, falling to the low of USD94.23 before the close. The two consecutive bearish candlesticks suggest the selling momentum below the USD99.99 immediate resistance is expected to persist towards the 200-day average line in the coming sessions, before hitting the USD90.56 support level. This is coupled with the continued weakening of the RSI below the 40% level. On the back of the persisting bearish sentiment, we retain our bearish bias.

COMEX Gold Getting Firmer Above The USD1,700

Meanwhile, short positions is being maintained on COMEX Gold.

The COMEX Gold’s rebound was blocked by the USD1,750 resistance, after rising USD14 from the previous session to close at USD1,745.30. It started off Friday’s session at USD1,735.30. After finding the day’s low at USD1,729.80, it progressed higher throughout the session, touching the session’s high of USD1,755.90 just before the close. Observe that the RSI has crossed above the trendline, suggesting the positive momentum is gaining traction. Coupled with the formation of the Bullish Engulfing pattern, this indicates strong support has formed at USD1,700. If the positive momentum follows through, the COMEX Gold may breach the USD1,750 immediate resistance to reach the higher resistance of USD1,770. Before the bullish breakout happens, the commodity may resort to a mild consolidation or sideways movement. For now, negative bias remains.

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