Maintain short positions as the retracement is deepening. The FCPO ended the latest session on a weak side. At the closing, it breached below both the previous immediate and second support levels of MYR2,095 and MYR2,038. The session registered a low and high of MYR2,016 and MYR2,090, before closing at MYR2,032, implying a decline of MYR63. The breakdown from the said support levels are negative as it means the retracement leg that started from the high of MYR2,344 on 7 Feb is extending. While the retracement is flashing out an oversold reading (Daily RSI), in the absence of price reversal signals, we keep to our negative trading bias.

With the bears still in clear control over the price trend, we continue to recommend that traders stay in short positions. We initiated these at MYR2,154, the closing level of 11 Apr. To manage risks, a stop-loss can now be placed at above MYR2,124.

Our immediate support is revised to MYR2,000, followed by MYR1,940, the low of 27 Nov 2018. The immediate resistance now expected at MYR2,124, the high of 30 Apr. This is followed by MYR2,235, the high of 5 Apr.

Source: RHB Securities Research - 3 May 2019