Maintain short positions as the bulls failed to stage a follow-up. The FCPO failed to follow-up from the prior session’s positive intraday price reversal. At the closing, the commodity settled MYR64 lower at MYR2,220. Trading ranged between MYR2,221 and MYR2,283. The absence of a positive follow-up indicates that the commodity’s weak bias is still firmly in place – this comes after it recently breached the 200-day SMA line. At this juncture, we believe an upside breach of MYR2,400 would likely signal a positive reversal in the daily chart. Until this happens, we are keeping our negative trading bias.

As the bears still have clear control over the price trend, 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 revised to MYR2,190, the low of 9 Mar. This is followed by MYR2,150. Moving up, the immediate resistance is now set at MYR2,283, the latest high. This is followed by MYR2,349, the high of 13 Mar.

Source: RHB Securities Research - 17 Mar 2020