Bursa Malaysia ended the Thursday morning trading session in red amidst selling pressure resumed with investors staying cautious over the increased between US and China and also tracking the volatile trading session on Wall Street overnight.
The FBM KLCI declined 8.35 points to 1,486.7 from Tuesday’s closing of 1,495.05.
The benchmark index opened 6.47 points weaker at 1,488.58 and moved between 1,483.01 and 1,489.46 throughout the session. Meanwhile, decliners outpaced gainers 399 to 264, while 395 counters were unchanged.
Trading volume remained anemic at best, 995.56 million units with value of RM533.92 million.
The Dow Jones Index Average lost 402 points while the Nasdaq closed 22 points lower as the US 10-year yield climbed higher to 2.75%.
It is expected that sentiments will turn cautiously pessimistic and the index to fluctuate within the 1,480-1,500 range today.
WTI Crude : Struggling To Rebound – Still Below The 200-Day SMA Line
RHB Research has maintained “short” positions on this primary futures.
The WTI Crude failed to rebound above the 200-day average line after falling from its intraday high to close below the long-term average line – just above its opening level. It settled USD0.53 higher at USD94.42. Yesterday, it opened slightly weaker at USD93.75 and fell to the USD92.59 low before buying pressure kicked-in. It bounced off strongly towards the USD96.47 intraday high before sharp profit-taking occurred, dragging the commodity lower towards the close. The strong intraday profit-taking, coupled with the close below the long-term average line, suggests that the bears are still in control, and will drag the black gold further below the long-term average line – potentially breaching below both the USD93.67 and USD90.56 support levels. As such, the research house is sticking to its bearish bias.
COMEX Gold: Upside Movement Blocked By USD1,800 Resistance
Maintain long positions.
The COMEX Gold’s upside movement was rejected by the wall of USD1,800 – the commodity rose USD2.00 from the previous session to close at USD1,789.70. It began at USD1,789.20, and after trading between USD1,805 and USD1,776, it closed at USD1,789.70 – printing a Doji candlestick pattern. The pattern showed that the bulls are taking a breather, and strong resistance has formed at USD1,800. The commodity needs to break past this immediate resistance to resume its upward trajectory. In the coming sessions, it will likely resort to sideways movement for consolidation. However, if the commodity retraces further, it is expected strong support to emerge near USD1,750. For now, the bullish structure is still intact, hence the research house has not made any changes to its positive bias.
