Maintain short positions, as the MYR2,000 psychological mark gives way. The FCPO formed a “Downside Gap” yesterday. At the close, it breached the previous MYR2,000 psychological support. The session’s low and high were at MYR1,965 and MYR1,988, before it ended MYR34 lower at MYR1,973. The breakdown of the said psychological mark can be seen as an indication that the bears are still in firm control and that the YTD weak price trend is extending. While the retracement has reached oversold territory, without a price signal to suggest a possible rebound is taking place, we keep to our negative trading bias.

As the YTD weak price trend is still not showing signs of stopping, we still recommend that traders keep to short positions. We initiated these at MYR2,148, or the closing level of 26 Oct. To manage risks, a stop-loss can now be set at above the MYR2,036 mark, the previous session’s high.

We revised the immediate support to MYR1,863, the low of 25 Aug 2015. This is followed by MYR1,800. Towards the upside, immediate resistance is now set at the MYR2,000, a psychological level. This is followed by MYR2,100, a round figure.

Source: RHB Securities Research - 15 Nov 2018