Maintain long positions. The FCPO ended yesterday’s session on the negative note. For the day, its oscillated between a low and high of MYR2,185 and MYR2,220, before ending at MYR2,193, this implied a decline of MYR18. The negative session suggests the rebound from the recent low of MYR2,144 is taking a breather. This did not alter the outlook of the commodity to extend its rebound – which set in after its previous multi-month deep retracement reached to an oversold level. On this, we are keeping our near-term positive trading bias.

As long as the low of the “Bullish Harami” of MYR2,144 is not breached, the bias for the commodity to extend its rebound would still be valid. On this, we continue to recommend for traders to maintain long positions which we initiated at MYR2,211, the closing level of 18 Jul. For risk management purposes, a stop-loss can be set at MYR2,144.

The immediate support is maintained at MYR2,144, the low of 13 Jul. The second support may be found at MYR2,100, the next round figure. Towards the upside, the immediate resistance is now at MYR2,272, the high of 10 Jul. The second resistance is pegged at MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 20 Jul 2018