Bulls are still not able to show greater control; maintain short positions. The FCPO failed to keep to its intraday gains. At one point, it hit a high of MYR2,164, before sliding to close at MYR2,137 – indicating a decline of MYR4. The second consecutive weak session means there is no clear price reversal signal from the 200-day SMA line, which was tested few sessions ago. All in, the commodity’s correction phase which resumed on 7 Sep’s failed attempt to cross the MYR2,300 level is still not showing signs of coming to an end. As such, we keep to our negative trading bias.

As the bears still have control over the price trend, we continue to recommend that traders stay in short positions. These were initiated at MYR2,245, the closing level of 19 Sep. To manage risks, a stop-loss can now be placed at above MYR2,173, the high of 26 Sep.

Immediate support is pegged at MYR2,100, near the 200-day SMA line. This is followed by MYR2,000, a round figure. On the other hand, the immediate resistance is set at MYR2,173, the high of 26 Sep. This is followed by MYR2,312, the high of 26 Aug.

Source: RHB Securities Research - 4 Oct 2019