Maintain short positions until signal for an interim low emerges. The FCPO staged a strong intraday comeback in the latest session, ending MYR7.00 higher at MYR2,284. This was after it reached an intraday low of MYR2,198. The sharp intraday reversal can be seen as a possible initial price signal that the bulls are attempting to regain control over the price trend, after the sharp decline over the recent weeks. To confirm this possibility, further positive price actions are required in the coming sessions. Until this happens, we are keeping to our negative trading bias.
Until price reversal is confirmed, traders are advised to remain in short positions. These were initiated at MYR2,332, the close of 9 Mar. To manage risks, a stop-loss can be placed above the MYR2,400 threshold.
The immediate support is set at MYR2,250 derived from the latest candle. This is followed by MYR2,190, the low of 9 Mar. Towards the upside, the immediate resistance is pegged at MYR2,350, near the latest high. This is followed by the MYR2,400 round figure.
Source: RHB Securities Research - 16 Mar 2020
Created by rhboskres | Aug 26, 2024