Maintain long positions provided the immediate support is not broken. The FCPO formed a black candle and ended the session MYR18 weaker at MYR2,195 yesterday – after it oscillated between a low and high of MYR2,192 and MYR2,217. The weak session has not invalidated the commodity’s corrective rebound phase that has been developing since the low of MRY2,140 on 25 Jul – as the immediate support of MYTR2,176 is still in place. Towards the downside, a downside break of the said immediate support may suggest the commodity’s YTD downtrend is resuming. Until that happens, we maintain our near-term positive trading bias.

With the immediate support of MYR2,176 still standing and as the FCPO may still be able to extend its rebound, 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 MYR2,176.

Immediate support is pegged at MYR2,176, the low of 31 Jul. This is followed by MYR2,140, 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 - 16 Aug 2018