No clear reversal signals from the immediate support level yet. The FCPO ended the latest session marginally lower by MYR3, at MYR1,942. This was after it briefly tested the immediate support of MRY1,940 with an intraday low of MYR1,928. The recent sessions’ price actions continued to suggest the bulls and bears were battling around the said immediate support. At this juncture, there are no clear signs appearing yet that can indicate the weak price trend has reached an end. Towards the upside, we are still seeing an upside breach of the immediate support of MYR1,987 as the required price signal that would suggest that a counter-trend rebound may develop. Hence, we keep to our negative trading bias.

Given that the commodity is still not able to show signs of rebounding from the said immediate support, we continue to recommend that traders stay in short positions. These were initiated at MYR1,951, the closing level of 28 Jun. A stoploss can now be placed above MYR1,987, the high of 27 Jun.

Immediate support is pegged 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 MYR1,987, the high of 27 Jun. This is followed by MYR2,059, the high of 18 Jun.

Source: RHB Securities Research - 10 Jul 2019