Maintain short positions. The FCPO ended the latest session on the positive note. The commodity closed MYR7 higher at MYR2,190, while the low and high were at MYR2,180 and MYR2,206. While the commodity has been able to bounce back above both 200-day SMA and uptrend lines (as drawn in the chart), there is still a lack of positive price signals to indicate a deeper rebound is developing. Provided the MYR2,200 is breached towards the upside, the overall negative bias remains. Maintain our negative trading bias.

In the absence 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.

Towards the downside, the immediate support is set at MYR2,095, the low of 29 Mar. This is followed by MYR2,038, the low of 15 Mar. Moving up, 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 - 22 Apr 2019