Maintain long positions as the bias for further rebound still valid. The soft commodity formed a black candle to settle the latest session MYR23 weaker at MYR2,023. Trading took place between MYR2,017 and MYR2,042. Despite the negative session, we still believe the commodity’s counter-trend rebound has not reached its end point yet. This bias would stay provided the MYR1,960 (the stop-loss for our ongoing long positions) is not breached. Towards the upside, there is a fair chance for the commodity to test the downtrend line (as drawn in the chart). Maintain our positive trading bias.

As we believe the bulls are still able to stage a stronger rebound, we continue to recommend traders to 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.

Towards the downside, the immediate support is set at MYR1,940, the low of 27 Nov 2018. This is followed by MYR1,900 threshold. Moving up, the immediate resistance is set at MYR2,124, the high of 30 Apr. This is followed by the MYR2,200 leve

Source: RHB Securities Research - 21 Jun 2019