Maintain short positions. The FCPO closed in a neutral position yesterday, ie marginally lower by MYR1, at MYR2,362. This is after it swung between a low and high of MYR2,247 and MYR2,275 yesterday. While the daily RSI is now showing an oversold reading of 26.7, for now, the near-term negative would remain in place as long as the commodity is capped by the immediate resistance of MYR2,336. This negative bias is further supported by both the 30-day and 50-day SMA lines, which continued to edge lower. On this, we keep to our near-term negative trading bias.

We continue to advise traders to keep to short positions. We initiated these positions at MYR2,263, the closing level of 19 Jun. For risk management purposes, a stop-loss can be set at above MYR2,336.

The immediate support is set at MYR2,253, the low of 26 Jul 2016. The following support is expected to emerge at MYR2,186, the low of 12 Jul 2016. On the upside, the immediate resistance is now set at MYR2,336, the high of 14 Jun. This is followed by MYR2,413, the high of 6 Jun.

Source: RHB Securities Research - 21 Jun 2018