Maintain short positions while shifting the trailing-stop south. The FCPO closed at MYR2,356 yesterday, after trading ranged between MYR2,327 and MYR2,364. This can be regarded as a positive follow-up from the prior session’s encouraging rebound off the low of MYR2,294. Based on this, there is a strong chance that our current negative trading bias could be on the wrong side of the market. However, to confirm this, the commodity has to cross above the MYR2,370 resistance mark. Until this happens, we make no change to our negative trading bias.

We continue to advise traders to stay in short positions. We initiated these at MYR2,329 – the closing level of 15 Jun. To manage risks, a stop-loss can now be placed above MYR2,370.

We revised the immediate support to MYR2,294, the low of 15 Jun. This is followed by MYR2,260. Conversely, the immediate resistance is set at MYR2,370, the price point of 15 Jun. This is followed by MYR2,422, the high of 9 Jun.

Source: RHB Securities Research - 22 Jun 2020