Maintain long positions. The FCPO ended the latest session in positive territory, charting a white candle, and closed at MYR2,212, signifying a gain of MYR17. This came after it oscillated between a low and high of MYR2,190 and MYR2,219. The positive closing is in line with the expectation for it to stage a corrective rebound - after its YTD steep retracement reached an extreme level – ie the daily RSI had hit the oversold mark of 22.4 on 13 Jul. For now, the bias for the commodity to extend this rebound phase should remain valid, as long as the MYR2,144 immediate support mark is not broken. Based on this background, we maintain our near-term positive trading bias.

As the rebound is still in effect, and increasingly the commodity may move higher to test the 30-day SAM line, 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 pegged 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 - 2 Aug 2018