Despite the softening of the factory activity in China as the official manufacturing purchasing managers’ index (PMI) fell to 49 in July, Bursa Malaysia closed higher in the morning trading session on Monday with the main index, FBM KLCI was up 4.83 points to 1,497.06.
The overall market breadth was positive with 406 gainers compared with 348 losers.
The main index rose in morning session as market participants were betting on the milder rate hikes in the future and the encouraging US corporate earnings results. The soaring of commodities prices is keeping the rally going.
Trading volume was 1.39 billion shares with the value of RM631.13mil.
Some of the top performers of today were Petronas Dagangan, Kuala Lumpur Kepong, IHH, United Plantation and SAM Engineering & Equipment.
WTI Crude : Re-Attempting To Initiate a Rebound
RHB Research has once again maintained “short” positions.
The WTI Crude re-attempted to climb higher last Friday before retracing from its intraday-high to close on a positive tone. It settled USD2.20 higher at USD98.62 – still within the sideways consolidation phase between the USD99.99 resistance and 200-day average line. The commodity opened higher at USD97.30 and then fell to hit the USD96.41 low before regaining its momentum towards hitting the USD101.88 high – this was before strong profit-taking took place towards the close, i.e. still above the opening level. The white body candlestick with long upper shadow signals the buying interest above the 200-day average line is building up, but capped by the USD99.99 immediate resistance. Hence, it is expected the downward bias to remain relevant in the coming sessions beneath the immediate resistance. As such, the research house is retaining its bearish bias unless the momentum reverses.
COMEX Gold: Strengthening Above The USD1,750 Support
Meanwhile, RHB Research is maintaining long positions on this precious metal derivative.
The COMEX Gold extended its upside movement for the second consecutive session, rising USD12.60 to close at USD1,781.80. It opened at USD1,773.10, then printed the day’s low of USD1,768.40 before the bulls lifted it throughout the session to record the day’s high at USD1,784.60 before closing. The latest bullish candlestick indicates that the commodity has solidified its position above the support level of USD1,750. If it continues to trade above the threshold, it should climb higher to test USD1,800, followed by the USD1,825 resistance. In the event that profit-taking activities emerge, it is believed USD1,750 will provide a strong support. As the RSI has crossed above the 50% threshold – showing that bullish momentum is in play – no change to positive bias.
