Maintain short positions. The FCPO gave back large part of its intraday gains in the latest session. After hitting a high of MYR2,778, it generally slid lower for the remaining of the session, reaching a low of MYR2,701 before closing at MYR2,716 – a gain of MYR28. Despite being able to hold above the MYR2,700 mark, the sharp retracement from the session’s high suggests selling pressure is emerging after two consecutive positive sessions. At this juncture, the downside risk is still high to correct the previous multi-week’s upward move. Maintain our negative trading bias.

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

The immediate support is revised to MYR2,700, also near the latest low. This is followed by MYR2,645, price point of 12 Aug. Moving up, the immediate resistance is set at MYR2,750, followed by MYR2,790 – the high of 24 Jul.

Source: RHB Securities Research - 14 Aug 2020