Highlights

RHB Retail Research

Author: rhboskres   |   Latest post: Wed, 13 Oct 2021, 4:56 PM

 

COMEX Gold: Attempting to Cross Above the 20-Day SMA Line

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:56 PM


Maintain long positions. The COMEX Gold attempted to cross the 20-day SMA line, rising USD3.60 to settle at USD1,759.30. Yesterday, it opened lower at USD1,753.60. Despite the weak opening, the commodity formed an intraday low of USD1,750.50, then reversed upwards during the US trading session to test the day’s high of USD1,770. The commodity then pared most of its intraday gains, as it retreated to close at USD1,759.30. The long upper shadow indicates selling pressure is persisting near the 20-day SMA line. As the moving average line is trending lower, the risk of a downtrend has increased. Meanwhile, the RSI is testing the 50% threshold, suggesting that the immediate term momentum favours an upside breakout. In the event the nearest support of USD1,747.70 gives way, expect selling pressure to intensify. Conversely, crossing the 20-day SMA line firmly will attract a follow through buying pressure. We maintain a positive trading bias until the stop-loss is triggered.

Traders should keep to their long positions initiated at USD1,767.60, or the closing level of 4 Oct. For management on trading risks, the stop-loss is marked at USD1,747.70 – the immediate support.

The immediate support remains at USD1,747.70 – 4 Oct’s low – followed by USD1,721.10, or 29 Sep’s low. The nearest resistance is kept at USD1,771.50 – 4 Oct’s high – followed by USD1,788.40, or 22 Sep’s high.

Source: RHB Securities Research - 13 Oct 2021

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Hang Seng Index Futures: Dipping Below the 25,000-Pt Level

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:55 PM


Maintain long positions. The HSIF showed early signs of weakness on profit taking activity, retreating 359 pts to settle the day’s session at 24,910 pts – falling below the 25,000-pt level. It gapped down and started Tuesday’s session at 24,897 pts. After the weak opening, it rebounded to test the day’s high of 25,139 pts before turning down again to touch the day’s low of 24,818 pts, closing weaker at 24,910 pts. The evening session saw the index recoup 58 pts to last trade at 24,968 pts. The session was called off early due to a typhoon warning issued by the authorities. Based on the latest price action, the index attempting to establish an interim low, after it broke past the 25,000-pt level on Monday’s session. A strong rebound in the subsequent session will deem the breakout to be successful. However, breaching the 24,800 pt immediate support would see the index falling back into a consolidation zone, and the bullish movement may end prematurely. We keep to our positive trading bias until the stop-loss is triggered.

We recommend traders to retain their long positions initiated at 24,809 pts, or the closing level of 7 Oct’s evening session. To manage the trading risks, the stop-loss is set at 24,558 pts.

The immediate support remains at 24,800 pts, followed by the 24,400-pt round figure. On the upside, the nearest resistance maintained at 25,400 pts, followed by 25,575 pts, or the low of 1 Sep.

Source: RHB Securities Research - 13 Oct 2021

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E-Mini Dow : Profit Taking Continues

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:54 PM


Still long positions. The E-Mini Dow resumed its correction yesterday by falling 116 pts lower to settle at 34,260 pts. The index opened lower at 34,356 pts and whipsawed in a negative direction throughout the session, which saw it drag towards the day’s low of 34,125 pts before reversing higher towards the day’s high of 34,486 pts. It then spiralled downwards to settle below the previous day’s close. The latest bearish candlestick with the upper and lower shadows indicates the continuation of the recent bearish momentum – heading towards the 34,000-pt immediate support. Since the RSI strength is still declining below the 50% level, we expect further profit taking ahead before reversing higher in the medium term. If it manages to rebound above the immediate support level, a “higher low” bullish structure may be formed, thereby renewing its bullish momentum for the medium term. As such, we keep to our positive trading bias, until the stop-loss is breached.

We suggest traders maintain the long positions we initiated at the closing level of 7 Oct, or 34,638 pts. To manage the trading risks, the initial stop-loss threshold is pegged at the 34,000-pt level.

The nearest support level is fixed at the 34,000-pt round figure and is followed by 33,383 pts, ie 1 Oct’s low. The immediate resistance is set at 34,800 pts, followed by the 35,000-pt psychological level.

Source: RHB Securities Research - 13 Oct 2021

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WTI Crude: Hovering Above the Immediate Support Level

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:53 PM


Maintain long positions. After the recent peak, the WTI Crude’s uptrend decelerated yesterday, closing just USD0.12 higher at USD80.64. The commodity began neutral at USD80.50 before experiencing volatility throughout the session, ie it whipsawed in an uptrend fashion towards the end of the European sessions – which saw intense volatily as it plummeted towards the day’s low of USD79.47 before swiftly bouncing off to hit the day’s high of USD81.62 – only to fall and pare most of the intraday gains towards the closing, ie just above the opening. The “doji” neutral candlestick suggests that the crude oil may move sideways between the USD82.18 resistance and USD79.55 support in the immediate term before firming up its direction. Also, since the latest RSI strength is neutral above the 70% overbought territory level, there is a higher chance for profit taking to take place in the coming session. We still keep to our bullish trading bias, until the trailing-stop level is breached.

We suggest traders stick to their long positions initiated at USD67.54, or the closing level of 24 Aug. For trading-risk management, the trailing-stop threshold is set at USD79.55, ie the immediate support.

The support levels are pegged at USD79.55 – 11 Oct’s low – and USD74.96, or 7 Oct’s low. The resistance level is set at USD82.18, or 11 Oct’s high. Subsequently, a higher resistance is drawn at the USD90.00 level.

Source: RHB Securities Research - 13 Oct 2021

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FKLI: Breaching Above The 200-Day SMA Line

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:53 PM


Maintain long positions. The FKLI broke past the 200-day SMA line on strong momentum, advancing 10.50 pts to settle at 1,581 pts yesterday. It opened at 1,568.50 pts. The bulls were nervous initially, when the index retreated to the day’s low of 1,557 pts. After that, it swiftly rebounded and moved upwards throughout the session, touching the day’s high of 1,582.50 pts before the close. The latest session saw the FKLI extending its uptrend, as it printed a fresh “higher high” bullish pattern. With the index having crossed the moving average line, the recent upward movement has been further strengthened.

Traders can expect a follow-though price action to test the 1,586-pt resistance. In the event the bears decide to take profits, strong support is near 1,564 pts. We maintain our positive trading bias. Traders should remain in long positions, initiated at 1,556 pts or the closing level of 6 Oct. To mitigate the downside risks, the stop-loss is at 1,550 pts.

The nearest support is at 1,564 pts (the low of 11 Oct), followed by 1,553 pts (the low of 8 Oct). Towards the upside, the immediate resistance is at 1,586 pts ie the high of 6 Sep, followed by the 1,600-pt psychological level.

Source: RHB Securities Research - 13 Oct 2021

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FCPO: Profit-Taking Activities Extend

Author: rhboskres   |  Publish date: Wed, 13 Oct 2021, 4:53 PM


Maintain long positions. Profit-taking activities on the FCPO were extended yesterday, and the commodity shed MYR100.00 to settle at MYR4,855. It opened weaker, at MYR4,915. Cautious sentiment saw the commodity undergoing a correction, and it fell to the session’s low of MYR4,838 before the close. The RSI is turning down from the 70% level, showing that the bulls are taking a breather after a strong rally recently. The bullish momentum may pick up again when the commodity is bouncing off the support level. Meanwhile, for the immediate term, we expect the commodity to find its support near the MYR4,838 level. If this level gives way, there is a risk that a bearish reversal pattern may be formed – the FCPO may see a further downward correction until a candlestick with a long lower shadow is formed. At this stage, we believe the upside risks remain in place, and maintain a bullish trading bias until the revised trailing-stop has been breached.

Traders should remain in long positions, initiated at the closing level of 22 Sep or MYR4,330. To manage trading risks, the trailing-stop has been raised to MYR4,838.

We revise the immediate support to MYR4,838 or the low of 12 Oct, followed by MYR4,793 ie the low of 8 Oct. Meanwhile, the immediate resistance is set at MYR4,900, followed by the MYR5,000 psychological mark.

Source: RHB Securities Research - 13 Oct 2021

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