Still capped by the immediate resistance; maintain short positions. The FCPO closed MYR2 lower yesterday, at MYR2,171. The session’s low and high were at MYR2,164 and MYR2,182. The inability of the commodity to break above the immediate resistance of MYR2,186 suggests that the “Bullish Harami” formation that emerged on 16 Jul is still unconfirmed. This is despite the commodity’s retracement reaching an oversold reading of 22.4 on 13 Jul. Until there is a signal that suggests a price rebound could take place, we maintain our negative near-term trading bias.

As the “Bullish Haram” formation is still unconfirmed, the risk of a rebound is not emerging yet. Hence, we continue to recommend that traders keep to short positions. We initiated these positions at MYR2,204, the closing level of 11 Jul. To manage risks, we revise the trailing-stop to MYR2,186.

Immediate support may be found at MYR2,100, the next round figure. The following support is at MYR2,000. On the flip side, the immediate resistance is envisaged at MYR2,186, the low of 12 Jul 2016. This is followed by MYR2,272, the high of 10 Jul.

Source: RHB Securities Research - 18 Jul 2018