Maintain long positions as the commodity appears unprepared for a new low. The bulls staged a comeback in the latest session. The commodity reversed from the earlier session’s weakness to settle MYR24 higher at MYR2,046, the low and high were at MYR2,007 and MYR2,049. Broadly, the commodity is still trading in the counter-trend rebound phase. Towards the upside, there is a fair chance for the commodity to test the downtrend line (as drawn in the chart). This outlook would remain, provided the MYR1,960 level (the stop-loss for our ongoing long positions) is not breached. Hence, we keep to our positive trading bias.

Given that the counter-trend rebound is still not showing signs of reaching an end, we continue to recommend traders stay in long positions. These were initiated at MYR2,034, which was the closing level of 17 Jun . To manage risks, a stop-loss can be placed below MYR1,960, the low of 13 May.

The immediate support is set at MYR1,940, the low of 27 Nov 2018. This is followed by MYR1,900 threshold. On the other hand, the immediate resistance is set at MYR2,124, the high of 30 Apr. This is followed by the MYR2,200 level.

Source: RHB Securities Research - 20 Jun 2019