Maintain short positions until the immediate resistance is taken over by the bulls. The FCPO came near to testing the immediate resistance of MYR2,202 in the latest session. At the closing, it advanced MYR23 to close at MYR2,198 while the intraday tone was positive as it generally moved higher for the entire session with the low and high at MYR2,165 and MYR2,200. Should the bulls manage to crack above the said immediate resistance in the coming sessions, it will negate our current negative bias and its upward move may extend further. Until that happens, we are keeping our negative trading bias.

Until there is a price confirmation that the upward move is ready to be resumed, we continue to recommend that traders keep to short positions. We initiated these at MYR2,136, the closing level of 14 Jan. For risk management purposes, a stop-loss can be placed above MYR2,202.

Immediate support is pegged at MYR2,093, the low of 26 Dec 2018. The following support is at MYR2,000. On the other hand, the immediate resistance is set at MYR2,200, the high of the 20 Dec. This is followed by MYR2,265, the high of 17 Oct.

Source: RHB Securities Research - 18 Jan 2019