Negative trend still in place; maintain short positions. The FCPO managed to reverse its earlier session’s weakness. At the closing, the commodity settled MYR8 higher at MYR1,988 – the low and high were posted at MYR1,963 and MYR1,990. While it continued to do well above the downtrend line (as drawn in the chart), further positive price actions are still needed to confirm an interim low has been achieved. For now, we are still seeing an upside breach of the 50-day SMA line as the required price signal. Until this happens, we stick with our negative trading bias.

Pending further positive price actions to signal that the bulls have wrested control from the bears, we continue to recommend that traders stay in short positions. These were initiated at MYR1,951, the closing level of 28 Jun. We have revised the stop-loss to MYR2,015.

Immediate support is still pegged at the MYR1,900 threshold. This is followed by MYR1,863, the low of 25 Aug 2015. Towards the upside, the immediate resistance is revised to MYR2,015, near the high of 24 Jun. This is followed by the MYR2,059 threshold, the high of 18 Jun.

Source: RHB Securities Research - 18 Jul 2019