Maintain short positions as the commodity still failed to recapture the 200-day SMA line. For the second consecutive session, the FCPO showed signs of attempting to recapture the 200-day SMA line, but failed. The commodity posted a high of MYR2,387 to test the said SMA, before retracing to settle at MYR2,377. The closing level was also below the immediate resistance of MYR2,380. We believe as long as the commodity is still capped by the said 200-day SMA line, the overall negative bias is still intact. Maintain our negative trading bias.

With no reversal signal spotted, we recommend traders to stay 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 MYR2,480. 

The immediate support is now set at MYR2,308, the latest low, followed by MYR2,288, the low of 28 Feb. Meanwhile, the immediate resistance is eyed at MYR2,380 – derived from 2 Feb’s candle. This followed by MYR2,430 – the high of 27 Feb.

Source: RHB Securities Research - 4 Mar 2020