Maintain short positions. The FCPO again staged a positive intraday price reversal, rebounding from a low of MYR2,383 to close at MYR2,429, indicating a gain of MYR17. The closing level continued to place the commodity below the MYR2,433 resistance. We observe that while the commodity has been able to stage a rebound over recent sessions, its momentum has not been encouraging. Broadly, we still view the commodity’s correction phase as incomplete and likely to resume in the coming sessions. Maintain 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 revised the immediate support to MYR2,410 – price point of the latest session, followed by MYR2,380 – near 8 Jul’s low. On the other hand, the immediate resistance is maintained at MYR2,433 – the high of 9 Jul. This is followed by MYR2,450 – price point of 24 Jun

Source: RHB Securities Research - 14 Jul 2020