Maintain short positions. The FCPO recorded a positive follow-up to its prior session’s “Bullish Harami” formation. It crossed above the MYR2,352 immediate resistance to close at MYR2,362, indicating a gain of MYR35.00. Based on the commodity’s latest two sessions, if it manages to breach above the MYR2,370 resistance point in the coming sessions, this would confirm the “Bullish Harami” formation – implying a good possibility for a stronger rebound to develop. Until this happens, we keep to our negative trading bias.

For now, we recommend that traders remain in short positions. We initiated these at MYR2,395, the closing level of 25 Jun. To manage risks, a stop-loss can be placed above MYR2,370.

The immediate support is revised to MYR2,345 – the price point of the latest session, followed by MYR2,325 – derived from 1 Jul’s candle. The overhead resistance is set at MYR2,370, which is slightly above 30 Jun’s high. This is followed by MYR2,400.

Source: RHB Securities Research - 8 Jul 2020