Failed to close above MYR2,370 mark; maintain short positions. The FCPO tested the immediate resistance of MYR2,370 with a high of MYR2,384, before giving back most of the gains to settle at MYR2,361 yesterday – indicating a MYR5.00 gain. While we previously highlighted that the commodity is attempting to extend its uptrend, it has yet to trigger the required price signal, ie closing above the immediate resistance. Hence, we are maintaining our negative trading bias.

Traders should stick to 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 are maintaining the immediate support at MYR2,294, the low of 15 Jun. This is followed by MYR2,260. Moving up, the immediate resistance remains at MYR2,370, the price point of 15 Jun. This is followed by MYR2,422, the high of 9 Jun.

Source: RHB Securities Research - 18 Jun 2020