Still eyeing a rebound; maintain long positions. While the FCPO closed just MYR1 higher, at MYR2,194, last Friday, we deem this as positive. This is as we regard this as a sign of the bulls entering the market, after the commodity touched the low of MYR2,170 during the session. The high was at MYR2,200. We still believe that the commodity could rebound further in the near term, at the minimum. This represents a corrective rebound after it experienced a steep decline YTD that saw the daily RSI reaching an oversold level recently. We are keeping our near-term positive trading bias.

Given the latest positive session and as long as the low of the “Bullish Harami” of MYR2,144 is not breached, the bias for the commodity to extend its rebound should still be valid. As such, we continue to recommend that traders 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.

We pegged the immediate support at MYR2,144, the low of 13 Jul. The following support is at MYR2,100, the next round figure. On the flip side, the immediate resistance is now at MYR2,272, the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 23 Jul 2018