Maintain short positions as the trend is still negative. The FCPO performed positively to settle MYR7 higher at MYR1,958. This was after it reached a low and high of MYR1,956 and MYR1,982. The positive session can be seen as just a minor rebound after the commodity’s recent retracement ie there is no sufficient evidence to suggest a reversal is taking place. As a trend, the negative bias that set in from the high of MYR2,344 on 7 Feb is still intact. For now, provided the commodity is still capped by the immediate resistance of MYR2,059, we keep to our negative trading bias.

As the bears are still seen to have firm control over the commodity’s price trend, we continue to recommend that traders to stay in short positions – initiated at MYR1,951, which was the closing level of 28 Jun. A stop-loss can be placed above MYR2,059.

The immediate support is set at MYR1,940, the low of 27 Nov 2018. The following support is expected at the MYR1,900 threshold. Moving up, the immediate resistance is pegged at MYR2,000, the next round figure. This is followed by MYR2,059, the high of 18 Jun.

Source: RHB Securities Research - 2 Jul 2019