Maintain short positions until bulls able to prove more. The FCPO staged a strong positive intraday price reversal, rebounding from a low of MYR2,362 to a high of MYR2,435, before closing MYR9 higher at MYR2,412. Depsite the positive closing, the commodity was still capped by the immediate resistance of MYR2,433. At this juncture, we still believe the commodity’s correction phase is incomplete and the downside risk remains high. Premsied on this,we are keeping our negative trading bias.

We advise traders to stay in short positions. We initiated these at MYR2,359 – the closing level of 7 Jul. To manage risks, a stop-loss can be placed at above MYR2,450.

We are keeping the immediate support at MYR2,380 – near 8 Jul’s low. This is followed byMYR2,335 – the low of 3 Jul. Meanwhile, the immediate resistance is pegged at MYR2,433 – the high of 9 Jul. This is followed by MYR2,450 – price point of 24 Jun.

Source: RHB Securities Research - 20 Jul 2020