Maintain short positions as the bulls are still not able to signal a stronger rebound yet. The FCPO settled the latest session MYR12 stronger at MYR2,149. Trading ranged between MYR2,146 and MYR2,170. While the positive session has kept the minor rebound that started from the 200-day SMA line on 30 Sep alive, further positive price actions are needed in the coming sessions, to signal the prospects for a stronger rebound to develop. Until this takes place, the commodity’s correction phase, which resumed on the failed attempt to cross the MYR2,300 level on 7 Sep, would still be deemed as intact. We maintain our negative trading bias.

As the bulls are still not able to signal the correction has reached an end, we continue to recommend that traders remain 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 above MYR2,173, the high of 26 Sep.

Towards the downside, immediate support is pegged at MYR2,100, near the 200-day SMA line. This is followed by MYR2,000, a round figure. Moving up, 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 - 7 Oct 2019