Trend stays bearish; maintain short positions. The FCPO performed encouragingly in the latest session, adding MYR72 to close at MYR2,288. The positive session came after the commodity tested the MYR2,186 support level in the prior session. However, based on the daily chart, it was still insufficient to suggest the multi-week negative price trend that started from the high of MYR3,150 on 9 Jan is ready for a reversal. Premised on this, we are keeping our negative trading bias.

Until a clear trend reversal signal emerges, 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 MYR2,350 threshold.

The immediate support is revised to MYR2,230 – the price point of the latest session. This is followed by MYR2,186, the low of 17 Mar. Towards the upside, the immediate resistance is revised to MYR2,350 – the price point of 18 Mar. This is followed by MYR2,400.

Source: RHB Securities Research - 23 Mar 2020