Maintain short positions, as the commodity is still capped by the 200-day SMA line. The FCPO tested the 200- day SMA line during the latest session, with an intraday high at MYR2,396. This was before it retreated to settle at MYR2,342 – indicating a gain of MYR10.00. As the bulls are seen as having failed in the attempt to recoup the said SMA line, this means the downside bias remains firmly in place. Recall that the FCPO breached below this said SMA line during the prior session after experiencing a multi-session rebound. We maintain our negative trading bias.

As the retracement phase may still be able to extend further, we stick with our recommendation that traders stay in short positions. These were initiated at MYR2,332, or the closing level of 9 Mar. For risk-management purposes, a stop-loss can be placed above the MYR2,494 threshold.

The immediate support is set at MYR2,249 and followed by MYR2,190 – both were derived from 9 Mar’s candle. Moving up, the immediate resistance is expected to emerge at MYR2,457 and followed by MYR2,494, ie the price points of 6 Mar.

Source: RHB Securities Research - 11 Mar 2020