Maintain long positions as the MYR2,144 is still holding. The FCPO ended last Friday’s session on a negative tone – softening MYR16 to close at MYR2,186. It oscillated between a low and high of MYR2,183 and MYR2,210. The weak session came after the commodity tested and rebounded from the MYR2,144 immediate support mark in the prior two sessions – this can be regarded as a sign that the bulls are taking a breather. Nevertheless, it does not change the overall technical bias for the commodity to extend its rebound phase. This bias would remain valid, provided the said immediate support is not breached at the closing. Hence, we maintain our near-term positive trading bias.

Given the latest weak session has not changed the bias for the commodity to extend its rebound phase, 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.

Towards the downside, the immediate support is set at MYR2,144, the low of 13 Jul. This is followed by MYR2,100, the next round figure. On the flip side, the immediate resistance is now at MYR2,272, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 30 Jul 2018