Maintain short positions. The FCPO traded in one of the narrowest ranges in recent weeks, between MYR2,351 and MRY2,371 – before closing at MYR2,367. The narrow trading range around the MYR2,370 immediate resistance indicates that the trend is undecided – and that the commodity is likely waiting for fresh catalysts. Nevertheless, we are still maintaining our bias. As long as the commodity fails to close above the MYR2,370 immediate resistance, the risk of it extending its correction phase would still be high. We stick to our negative trading bias.

With no confirmation of a reversal, 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 set the immediate support at MYR2,294, the low of 15 Jun. This is followed by MYR2,260. Meanwhile. the immediate resistance is at emerge at MYR2,370, the price point of 15 Jun. This is followed by MYR2,422, the high of 9 Jun.

Source: RHB Securities Research - 24 Jun 2020