Maintain short positions while moving down trailling-stop. The FCPO closed at MYR2,679 yesterday. At one point, it reached a high of MYR2,709 in an attempt to break the MYR2,710 resistance point. Based on the recent sessions’ price actions – and if the resistance point is not breached – the commodity’s weak price bias would stay in place. We believe the commodity is correcting its previous sharp multi-week uptrend, with the bias for it to re-test the 200-day SMA line. We make no change to our negative trading inclination.

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 MYR2,710.

Support levels remain unchanged, at MYR2,660 and MYR2,630 – both are derived from 12 Aug’s candle. Moving up, resistance points are pegged at MYR2,710, followed by MYR2,750.

Source: RHB Securities Research - 18 Aug 2020