Maintain long positions until the stop-loss of MYR1,960 is breached at the closing. The FCPO performed weakly in the latest session. For the intraday, it reached a low and high of MYR1,953 and MYR1,980, before closing MYR15 weaker at MYR1,966. As mentioned in our recent reports, if the MYR1,960 is not breached at the closing, the bias for the commodity to extend its rebound should still be valid. The expectation for a counter-trend rebound to develop is meant to correct the commodity’s prior multi-week retracement leg. Hence, we make no change to our positive trading bias.

As we believe the commodity still has a fair chance of extending its counter-trend rebound, we continue to recommend traders to stay in long positions. These were initiated at MYR2,034, the closing level of 17 Jun. To manage risks, a stoploss can be placed below MYR1,960, the low of 13 May.

Immediate support is expected at MYR1,940, the low of 27 Nov 2018. This is followed by the MYR1,900 threshold. Towards the upside, 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 - 27 Jun 2019