Maintain long positions. The FCPO was under the bears’ reign in the latest session, as it ended MYR17 weaker at MYR2,152, while the low and high were recorded at MYR2,148 and MYR2,173. The weak session suggests the rebound trade that we have been expecting to develop is still not as strong as desired. It is needed to correct the commodity’s YTD steep retracement, which reached an oversold level recently. Despite the still weak rebound, we maintain that the bias for a further rebound would be valid as long as the immediate support of MYR2,144 is not violated. Hence, we maintain our near-term positive trading bias.

As the MYR2,144 support mark continues to hold, with a possibility of the commodity rebounding further is still valid, we continue to recommend that traders maintain long positions, initiated at MYR2,211, or the closing level of 18 Jul. For risk management purposes, a stop-loss can be set at MYR2,144.

The Immediate support may be found at MYR2,144, the low of 13 Jul. The following support is pegged at MYR2,100, the next round figure. On the other hand, 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 - 25 Jul 2018