Maintain long positions. The FCPO performed positively in the latest session as it closed MYR6 higher at MYR2,192. This came after it oscillated between a low and high of MYR2,186 and MYR2,204. As a trend, we continue to believe the rebound phase that has been developing since the low of MYR2,144 on 17 Jul is still in play – albeit not as strong as estimated. As long as the said low is not breached at the closing, the bias for the commodity to rebound further should remain valid. On these technicalities, we maintain our near-term positive trading bias.

As the rebound phase is likely to be extended, this implies that the YTD deep retracement may not be resuming anytime soon. 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 is pegged 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, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 31 Jul 2018