Maintain long positions as long as MYR2,144 holds. Yesterday saw the FCPO registered a weak session, as it closed MYR25 lower at MYR2,169, near the session’s low – the trading range was between MYR2,167 and MYR2,208. Nevertheless, we view the commodity’s corrective rebound phase as still in play – this set in after its YTD steep retracement reached a stretched level recently, which saw the daily RSI hit an oversold threshold. In the near-term, as long as the low of the “Bullish Harami” of MYR2,144 on 13 Jul is not breached, opportunity for the commodity to extend its rebound would still be valid. On these technicalities, we maintain our near-term positive trading bias.

As the commodity’s rebound phase is still being played out and the MYR2,144 support mark still holding, 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.

The immediate support is set at MYR2,144, the low of 13 Jul. This is followed by MYR2,100, the next round figure. Towards the upside, 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 - 24 Jul 2018