Maintain long positions as long as the immediate support holds. Yesterday, the FCPO formed a black candle - suggesting it was led by the bears. Intraday, the commodity registered a low and high of MYR2,241 and MYR2,257, before closing MYR12 lower at MYR2,246. The weak session set in after the commodity came close to test the 50-day SMA line in the prior session. We view the weak session as a sign of the commodity consolidating below the 50-day SMA line, before attempting to test the said line. This positive bias would remain valid as long as the immediate support of MYR2,176 is not breached. On this, we maintain our near-term positive trading bias.

As the bias for the commodity to extend its rebound since the low of MYR2,140 on 25 Jul is still valid, and with no clear price reversal signal spotted, we continue to recommend that traders maintain long positions – initiated at MYR2,211, or the closing level of 18 Jul. For risk management purposes, we revise the stop-loss to MYR2,176.

We maintain the immediate support at MYR2,176, the low of 31 Jul. The following support is at MYR2,140, which is the low point of 25 Jul. On the other hand, the immediate resistance is pegged at MYR2,272, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 10 Aug 2018