Maintain short positions as the retracement is still developing. The FCPO ceased the latest session MYR35 lower at MYR2,204 – thereby breaching the previous immediate support of MYR2,222. Trading ranged between MYR2,202 and MYR2,254. The commodity’s retracement resumed after the appearance of the “Bearish Engulfing” formation on 9 Apr. Chances are high that the commodity could retest the MYR2,186 support level, as part of the sideway trading range that has been in development since early March. Hence, we are keeping our negative trading bias.

We recommend that traders stick to short positions, We initiated these at MYR2,246, the close of 13 Apr. For risk management purposes, a stop-loss can now be placed at the breakeven level.

We revised the immediate support to MYR2,186, the low of 17 Mar. This is followed by MYR2,150. On the other hand, the immediate resistance is now pegged at MYR2,230, followed by MYR2,303, the high of 15 Apr.

Source: RHB Securities Research - 17 Apr 2020