Maintain short positions. The FCPO added MYR48.00 to close at MYR2,765, while the high was at MYR2,775. The increase set in after the commodity came close to breaching the MYR2,700 support in the prior session. Despite the positive session, the risk of the FCPO undergoing a retracement would still be high, if the immediate resistance of MYR2,790 is not breached at the close. This expectation is based on the view that the uptrend between May and 4 Aug is due for a correction. We maintain our negative trading bias.

We advise traders to stay in short positions. We initiated these at MYR2,672, the closing level of 27 Jul. To manage risks, a stop-loss can now be set above MYR2,790.

We revise the immediate support to MYR2,730 – the price point of the latest session. This is followed by MYR2,700. Moving up, the immediate resistance is now at MYR2,790, derived from 24 Jul’s high. This is followed by MYR2,808, the high of 4 Aug.

Source: RHB Securities Research - 7 Aug 2020