Maintain short positions as the bears are still lingering around the immediate support. The FCPO settled MYR6 lower at MYR1,950 in yesterday’s close, after oscillating between a low and high of MYR1,947 and MYR1,965. Overall, we still believe the commodity’s downtrend that started from the high of MYR2,344 on 7 Feb is still in place. This is supported by the fact that there is an absence of price reversal signals from the immediate support of MYR1,940 in recent sessions. As such, we maintain our negative trading bias.

With no price actions to suggest the bulls are ready to stage a rebound from the said immediate support level, 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.

Immediate support is expected to emerge at MYR1,940, the low of 27 Nov 2018. This is followed by the MYR1,900 threshold. On the other hand, the immediate resistance is set at MYR2,000, the next round figure. This is followed by MYR2,059, the high of 18 Jun.

Source: RHB Securities Research - 5 Jul 2019