No confirmation of the “Bullish Harami”; maintain short positions. The FCPO posted a gain of MYR9 to close at MYR2,613. This came after it recorded a low and high of MYR2,595 and MYR2,644. The positive performance can be seen as just a minor bounce, and it did not flash out a positive price signal confirming 29 Jan’s “Bullish Harami” formation – which appeared near the 100-day SMA line. This implies that the FCPO’s prospects of staging a rebound remains limited. As such, we are maintaining our negative trading bias.

As the bulls are still struggling to stage a rebound, traders are advised to remain in short positions. We initiated these at MYR2,652, the closing level of 30 Jan. To manage risks, a stop-loss can be placed above MYR2,753.

The immediate support is at MYR2,575, the low of 28 Jan’s “Bullish Harami”, followed by MYR2,500. Moving up, the immediate resistance is now at MYR2,658, derived from 30 Jan’s candle. This is followed by MYR2,700, a round figure.

Source: RHB Securities Research - 4 Feb 2020