Maintain long position as long as the MYR2,176 level holds. The FCPO formed a black candle yesterday, closing MYR38 weaker at MYR2,204. The session’s low and high were recorded at MYR2,200 and MYR2,227. The decline set in after the commodity came close to testing the 50-day SMA line in prior three sessions – suggesting a possible price rejection. However, for now, as long as the MYR2,176 immediate support level is not broken, the risk of a deeper retracement or even the resumption of the YTD downtrend would still be low. Based on this, we maintain our near-term positive trading bias.

As the commodity’s rebound is still intact and provided the MYR2,176 support mark is not breached, 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.

Towards the downside, the immediate support is maintained at MYR2,176, the low of 31 Jul. The following support may be found at MYR2,140, the low point of 25 Jul. On the upside, 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 - 14 Aug 2018