Maintain short positions as the bears are taking a breather. The FCPO experienced a positive session as it managed to reverse its earlier session’s weakness – at the closing, it took out the previous immediate resistance of MYR2,115. The commodity gained MYR26 to close at MYR2,131, with the low and high at MYR2,092 and MYR2,145. Still, based on the daily chart, there is still lack of technical evidence to suggest the commodity is ready to pose a deeper rebound at this juncture. For now, as long as it still capped by the MYR2,217 resistance level, the overall negative bias would still be valid.

Pending further positive price actions to suggest the retracement leg has reached an end, we continue to recommend that traders stay in short positions. These were initiated at MYR2,089, the closing level of 13 Mar. To manage risks, a stop-loss can be placed above MYR2,158.

The immediate support is maintained at MYR1,940, the low of 27 Nov 2018. The following support is at MYR1,900. Moving up, the immediate resistance is revised to MYR2,217, the high of 4 Feb. This is followed by MYR2,278, which was the high of 25 Feb.

Source: RHB Securities Research - 20 Mar 2019