Maintain short positions. The FCPO ended its 2-day sharp rally in the latest session by sliding MYR22 to settle at MYR2,183, with a trading range of MYR2,164 and MYR2,200. Still the commodity managed to settle above both the 200-day SMA and uptrend lines (as drawn in the chart). At this juncture, should both the said lines be broken to the downside, it would then enhance the negative bias. Conversely, should the latest intraday high is breached to the upside, the commodity may be able to reverse its weak bias.

Until this happens, we keep to our negative trading bias. Pending confirmation of a price reversal signal, we continue to recommend that traders stay in short positions. We initiated these positions at MYR2,154, the closing level of 11 Apr. To manage risks, a stop-loss can be now be placed at above MYR2,200, the latest session’s high.

The immediate support is set at MYR2,095, the low of 29 Mar. This is followed by MYR2,038, the low of 15 Mar. On the other hand, the immediate resistance is pegged at MYR2,235, the high of 5 Apr. This is followed by MYR2,344, the high of 7 Feb.

Source: RHB Securities Research - 18 Apr 2019