Maintain short positions as the bears are in firm control. The FCPO continued to slide downwards in the latest session, ending MYR105 lower at MYR2,438 – thereby breaching both previous support levels of MYR2,516 and MYR2,454. The trading range was wide, with the low and high posted at MYR2,435 and MYR2,533. The retracement that started from the high of MYR3,150 on 9 Feb is not showing signs of reaching an end, and it is on the path to retest the 200-day SMA line. Without a price reversal signal, we are keeping our negative trading bias.

As the retracement is still developing, traders should remain in short positions. We initiated these at MYR2,695, the closing level of 11 Feb. To manage risks, a stop-loss can be placed above MYR2,533.

We revised the immediate support to MYR2,400 round figure, followed by MYR2,380, the current 200-Day SMA line reading. Towards the upside, the immediate resistance is revised to MYR2,485, derived from the latest candle. This is followed by MYR2,533, the latest high.

Source: RHB Securities Research - 26 Feb 2020