Bursa Malaysia closed the Wednesday morning trading session slightly higher with the main index, FBM KLCI rose 5.32 points to 1,524.10, compared with Tuesday’s closing of 1,518.78. The main index is expected to move upward in a capped manner or cautiously optimistic mood tracking that of the regional tone.
Meanwhile the broader market was mildly negative with decliners outpaced gainers 389 to 341, while 389 counters were unchanged.
Trading volume registered at 1.6 billion units with value of RM956.71 million.
Some of the top gainers for the morning session were Nestle, KL Kepong, Petronas Dagangan, PPB, Aeon Credit, Heineken Malaysia, Apex Healthcare, Chin Hin.
Whilst losers were Dutch Lady, MPI, KESM, F&N, Carlsberg, Hap Seng.
WTI Crude : Heading Towards a 7-Month Low
RHB Research in its technical analysis report dated August 17, has continued to maintain “short” positions on this futures.
The WTI Crude extended its downward movement yesterday, retreating USD2.88 to close at USD86.53. The commodity began Tuesday’s session with negative sentiment, gapping down to open at USD87.93. Despite the weak opening, it staged a technical rebound to test the USD90.65 intraday high. However, momentum was short-lived and the rebound failed to rally the commodity higher – it retreated to the day’s low of USD85.73 before the close. The session saw the commodity chart a fresh “lower high” with “lower low”. The bearish pattern reaffirms that the bears are getting stronger. The black gold should continue to see a correction and test the next support level at USD85. On the upside, the USD92 level is acting as the immediate resistance. As negative momentum is in play, the research house is keeping its bearish bias.
COMEX Gold: Momentum Slowing Down
Meanwhile, for this precious metal futures, RHB Research has maintained “long” positions.
The COMEX Gold pulled back for a second consecutive session, falling USD8.40 to close at USD1,789.70. The commodity started off Tuesday’s session at USD1,795.50. It then traded within the range of USD1,798 and USD1,785.40 before the weak closing. As stated in our previous note, the yellow metal’s momentum is losing steam. With the RSI rounding lower – echoing the slowing momentum – the COMEX Gold has to consolidate before it can resume upside movement. The bulls may stage a rebound near the USD1,787 support level. In the event the immediate support gives way, and a fresh “lower low” is charted, this will open the door for a deeper correction towards USD1,770. Although the commodity is experiencing mild selling pressure, the research house is holding on to its bullish bias until the trailing stop is breached.
