Bulls are attempting to wrest control; maintain short positions. The FCPO closed the latest session on a positive tone. It gained MYR29 to close at MYR2,014, trading ranged between MYR1,983 and MYR2,019. The encouraging session was a positive follow through from the prior session’s positive intraday reversal. However, based on the daily chart, to confirm that the commodity’s current phase of retracement has reached an interim low and hence, ready to stage a possible bigger rebound, the bulls have to first push through the MYR2,058 immediate resistance mark. Until this happens, we keep to our negative trading bias.

Until there are further positive price actions from the bulls to signal a change in the bias, traders can remain in short positions. We initiated these at MYR2,154, the closing level of 11 Apr. To manage risks, a stop-loss can be placed above MYR2,058, the high of 8 May.

The immediate support is pegged at MYR1,940, the low of 27 Nov 2018. This is followed by MYR1,900. On the other hand, the immediate resistance is set at MYR2,058, the high of 8 May. This is followed by MYR2,124, the high of 30 Apr.

Source: RHB Securities Research - 15 May 2019