Maintain short positions as there is no trend reversal signal in sight. The FCPO managed to reverse its earlier session’s weak fortunes, to settle the latest session slightly higher by MYR1 at MYR2,289. The low was recorded at MYR2,214. The soft commodity’s recent price actions suggest its downward bias remains and that a rebound is unlikely at this juncture. This is further supported by the fact the commodity is still capped by the 200-day SMA line. Hence, we are keeping our negative trading bias.

As the bulls are still unable to signal a change in 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 MYR2,350 threshold.

The immediate support is maintained at MYR2,230 – the price point of the 20 Mar’s session. This is followed by MYR2,186, the low of 17 Mar. Moving up, the immediate resistance is revised to MYR2,350 – the price point of 18 Mar. This is followed by MYR2,400.

Source: RHB Securities Research - 24 Mar 2020