Bursa Malaysia ended the Friday morning trading session lower with the FBM KLCI ceded 2.95 points to 1,513.67. The main index dipped lower as profit-taking on consumer staples counters.
Market breadth was positive with gainers outpaced losers 374 to 343, while 393 counters were unchanged.
Trading volume totaled at 1.21 billion units with value of RM794.77 million.
Some of the top gainers in the morning session were MPI, Heineken Malaysia, Batu Kawan, Carlsberg, MMS Ventures, Gas Malaysia, Hengyuan, Petron, Press Metal.
Whilst top losers were Nestle, Quality, Kobay, Petronas Dagangan, Axiata, Dialog, KL Kepong.
WTI Crude : Staging a Technical Rebound
RHB Research has maintained “short” positions on WTI Crude.
Amidst tapering selling pressure, the WTI Crude staged a technical rebound yesterday, climbing USD2.39 from the previous session to close at USD90.50. It started off at USD87.39 and progressed higher throughout the session, touching the session’s USD91.46 high before the close. If bullish momentum continues, it may climb to test the USD92 immediate resistance. A breach of this resistance level would be an early indication of bottoming and a reversal of trend. However, as the RSI remains below the 50% threshold, and a “higher high” bullish pattern is yet to be seen, the bears may remain in control for now. If selling pressure increases again, the commodity should revert to a correction, testing the support levels at USD85 and USD81.90. As long as the commodity is trading below the trailing stop, it is deemed the bearish structure as intact. The research house is holding on to its bearish bias for now.
COMEX Gold: Drifting Below The 20-Day SMA Line
Whilst for this precious metal futures, RHB Research has retained its “short” positions.
The COMEX Gold extended its downside correction for the fourth consecutive session yesterday, retreating USD5.50 to close at USD1,771.20 – falling below the 20-day SMA line. It started Thursday’s session at USD1,777.10. At one point, it staged a quick rebound to test the intraday high of USD1,786.30. However, during the US session, negative momentum accelerated, dragging it to the session’s low of USD1,768.80 before closing at USD1,771.20 (below the opening price). The latest bearish candlestick showed that negative momentum is getting stronger. With the RSI trending lower, the commodity should correct towards USD1,770, followed by USD1,750. As the commodity is still undergoing correction, both the 20-day and 50-day SMA lines will act as resistance levels. The correction will continue until a bullish reversal candlestick is charted. As negative momentum is accelerating, no change to bearish bias.
