Maintain short positions until reversal is confirmed. The FCPO traded in a wide band in the latest session. It saw a low and high of MYR2,186 and MYR2,342, before closing MYR30 higher at MYR2,250. The sharp rebound from the low is signalling that the bulls are attempting to mark an end to the commodity’s multi-month retracement. Positive price actions in the coming sessions are critical in confirming this. Until this happens, we are keeping our negative trading bias.

Pending confirmation of the price reversal signal, 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 MYR2,342 threshold.

The immediate support is revised to MYR2,186, the latest low, this is followed by MYR2,150. Towards the upside, the immediate resistance is now set at MYR2,285, price point from the latest candle. This is followed by MYR2,342, the latest high.

Source: RHB Securities Research - 18 Mar 2020