No positive follow-up from the bulls; maintain short positions. The FCPO formed a black candle in the latest session. At one point, it briefly tested the immediate support of MYR1,940 for a second consecutive session – the intraday low was at MYR1,938. At the closing it settled MYR11 weaker at MYR1,956. The negative session suggests there were no positive follow-ups from the previous session’s intraday reversal. As such, the overall weak trend that started from the high of MYR2,344 on 7 Feb is still firmly in place. We maintain our negative trading bias.

As the bulls are still not able to wrest control from the bears to stage a rebound, we continue to recommend that traders stay in short positions. These were initiated at MYR1,951, the closing level of 28 Jun. A stop-loss can be placed above MYR2,059.

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

Source: RHB Securities Research - 4 Jul 2019