Maintain short positions while waiting for clearer price signals. The FCPO underwent a positive intraday reversal in the latest session, after it briefly breached the immediate support of MYR1,940 with a low of MYR1,930. This was before it settled MYR10 higher at MYR1,960. Both the bulls and bears have been battling around the said immediate support over the recent sessions. Based on this technical observation, we are of the view that as long as the commodity remains capped by the MYR1,987 immediate resistance, the overall negative bias is still intact. Hence, we keep to our negative trading bias.

Until there are clearer signals to suggest the bulls have taken control over the price trend, 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 now be placed above MYR1,987, the high of 27 Jun.

Immediate support is eyed 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 now set at MYR1,987, the high of 27 Jun. This is followed by MYR2,059, the high of 18 Jun.

Source: RHB Securities Research - 8 Jul 2019