Bursa Malaysia traded in cautious mood ahead of FOMC Meeting scheduled on 27 and 28 July, this week -the highly anticipated meeting is expected to have a one-time 75 basis point rate hike. The morning trading session was ended in a negative note with the FBM KLCI) down 6.99 points or 0.48% to 1,462.23 from Monday’s closing 1,469.22.
The overall market was in negative breadth as 294 gainers were outpaced by 385 decliners, while 380 counters traded unchanged.
The barometer index was dragged by oil and gas and plantation counters.
WTI Crude : Buying Interest Emerges At The 200-Day SMA Line
RHB Research is maintaining “short” positions on WTI Crude.
The WTI Crude rebounded from the 200-day average line yesterday, inching up USD2 to close at USD96.70 – still lower than the previous session’s high of USD97.95. Despite opening higher at USD95.10, the commodity whipsawed between the USD93.01 low and USD96.94 high before closing near the intraday high. Despite printing the positive candlesticks near the 200-day average line, the positive momentum will be shortlived, as strong selling interest will appear near the USD99.99 immediate resistance. It is likely that the selling momentum persisting beneath the 200-day average line – breaking below the USD93.67 immediate support before hitting the USD90.56 next support. Hence, the research house is retaining its bearish bias.
COMEX Gold: Blocked By The USD1,750 Resistance
Meanwhile, COMEX Gold gets a “short” calls from RHB Research.
The COMEX Gold’s upside movement hit into the USD1,750 wall yesterday, retreating USD8.20 from the previous session to settle at USD1,737.10. The commodity began the session at USD1,744. During the European session, it jumped to test the USD1,752.50 session high. However, strong selling pressure at the resistance pushed it lower towards the USD1,730.90 session low before the close. The latest price action reaffirmed that USD1,750 has become a strong resistance. The COMEX Gold needs to break past the immediate threshold to extend the counter-trend rebound. If it fails to do so, it may experience profit-taking in the coming sessions and retreat towards the recent low of USD1,700. Although the RSI has crossed above the trendline, it is still under the 50% threshold. As such, the downside risks remain and it is expected the commodity to trade below the immediate resistance until the momentum picks up again. Hence, the research house is sticking to a negative bias.
