Bursa Malaysia closed the Wednesday morning session softer as the FBM KLI dipped in the red, shed 5.32 points to 1,492.35.
Market participants are on a cautious mood as the release of US inflation data is on Wednesday. The CPI print shall dictate US Federal Reserve’s future interest rate decision. Also, it is the corporate earnings reporting season hence, investors may stay on the sideline.
On the market breadth, it was negative with 540 decliners outnumbered 181 gainers.
Whilst trading volume was 1.23 billion shares with total value of RM689.16mil.
WTI Crude : Strong Intraday Profit-Taking Below The Immediate Resistance
RHB Research has maintained “short” positions on this derivative.
The WTI Crude attempted to surpass the USD93.50 immediate resistance yesterday before strong intraday profit-taking took place – it closed below the opening level, settling USD0.26 lower at USD90.50. The commodity opened slightly lower at USD90.69 and then whipsawed between the USD89.05 low and USD92.65 high before strong profit-taking wiped all the intraday gains towards the close – slightly below the opening level. The neutral candlestick with upper and lower shadows beneath the USD93.50 immediate resistance signals that the upwards rebound is likely to occur in the coming sessions. This is because the WTI Crude might fall lower to consolidate towards the USD87.01 immediate support in later sessions – in line with the “lower high” bearish structure. Coupled with the RSI still pointing below the 40% level, the medium-term weakness will remain. As such, the research house is keeping to its bearish bias for now.
COMEX Gold: Crossing Above The 50-Day SMA Line
Again, “long” positions are being maintained by RHB Research on this precious metal futures.
The COMEX Gold crossed above the 50-day SMA line, as bullish momentum picked up pace again. The commodity began Tuesday’s session at USD1,805.50. After setting its foothold at the session’s low of USD1,799.40, it climbed to the session’s high of USD1,817 before the close. The latest session saw the COMEX Gold charting a fresh “higher high” bullish pattern, and crossing above the moving average line – these technical signals have enhanced the bullish setup. If the momentum follows through, the commodity should go on to test the USD1,825 immediate resistance. It is observed that the RSI is tagging the trendline and moving higher, echoing that bullish momentum is still in play. On the other hand, if there is profit-taking, the USD1,770 level will provide immediate support. For now, no change to positive bias.
