Maintain short positions. The FCPO ended its three sessions’ minor rebound, settling MYR49.00 weaker at MYR2,709 – breaking the previous immediate support of MYR2,730. The negative session likely marked the resumption of the commodity’s retracement phase – which, in turn, is to correct the commodity’s previous multi-week uptrend. On the flip side, this negative bias would be enhanced if the MYR2,700 support is breached. 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.

The immediate support is now eyed at MYR2,700, followed by MYR2,670 – the price point of 30 Jul. Conversely, the immediate resistance is now set at MYR2,760, derived from 7 Aug’s candle. This is followed by MYR2,790, which is the high of 24 Ju

Source: RHB Securities Research - 11 Aug 2020