Bears are pushing down prices; maintain short positions. The FCPO’s negative bias continued to extend in the latest session, which at the closing, saw the previous immediate support of MYR2,150 breached. The commodity reached a low and high of MYR2,134 and MYR2,183, before closing at MYR2,141, indicating a decline of MYR48. While the decline has reached our minimum target ie MYR2,150, in the absence of a price reversal signal, the correction phase that resumed on the failed attempt to cross the MYR2,300 level on 17 Sep is still considered intact. Hence, we keep to our negative trading bias. On the observation that the bears have a firm control over the price trend, we continue to recommend that traders stay in short positions. These were initiated at MYR2,245, which was the closing level of 19 Sep. To manage risks, a stoploss can now be placed at the breakeven level. We revise the immediate support target to MYR2,100, near the 200-day SMA line. This is followed by MYR2,000, a round figure. Meanwhile, the immediate resistance is still pegged at MYR2,312, which was the high of 26 Aug. This is followed by MYR2,344, or the high of 7 Feb.

Source: RHB Securities Research - 25 Sept 2019