As anticipated, selling continues to dominate as the commodity remains below the RM2,950 resistance level. Thus, the selling that started on 6 July continues, moving downwards since late March, with the latest lower highs at RM3,193 and RM3,182. The commodity remains below the declining 50-day MAV line and the 200-day MAV lines, reinforced by the longer-term negative indication of the 'Death Cross' that emerged in early July. Note however, last Friday's lower close did not erase last 2 Aug's white candle hint of an upward bias, where the commodity rebounded off the RM2,900 strong support level.

The commodity is expected to trade lower today and a downside bias should come into effect, as long as it stays below RM2,950. Strong support remains at RM2,900, where a false breakout occurred two weeks ago and a violation is imperative to keep the negative bias going, especially with 2 Aug's upward bias hint is still left unchecked. A crowded support level lies just below, as support is expected at the Oct 2011 covered gap of RM2,820 and at the psychological RM2,800. Stronger support is expected at the Oct 2011 low of RM2,750, while minor support is also expected at RM2,850. However, a sustained trade above RM2,950 may indicate a continuation of 2 Aug's upward bias. Resistance remains at 1 Aug's morning low of RM2,975, followed by RM3,000. Only a close back above the RM3,000 psychological level will confirm the return of buying. The next resistance is then at the broken supports of RM3,050 and RM3,100 ' the 76% retracement of the late May-early June decline and 38% of the Apr-June decline. Minor resistance is also expected at RM3,030 and RM3,070.

Source: OSK