Maintain short positions. The FCPO continued to close higher for the second consecutive session and closed MYR27 higher, at MYR2,359. The high was recorded at MYR2,375, which was lower than the previous session’s high of MYR2,396 – indicating that the bulls still lack strength. At this juncture, as long as the commodity is still capped by the 200-day SMA line, the overall technical would likely remain bearish. Premised on this, we maintain our negative trading bias.

We still recommend that traders stick to 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 expected at MYR2,249 and followed by MYR2,190 – both derived from 9 Mar’s candle. Conversely, the immediate resistance is now at MYR2,425 and followed by MYR2,494, the price points of 6 Mar.

Source: RHB Securities Research - 12 Mar 2020