Maintain short positions. The FCPO failed to sustain its intraday gains in the latest session. After reaching a high of MYR2,870, the commodity slid to a low of MYR2,750, before closing flat at MYR2,822. The latest two sessions’ price actions indicate that a minor rebound is taking place around the 50-day SMA and the multi-week uptrend (as labelled in the chart) lines. This also implies that the commodity may retest these lines, following the previous session’s intraday downside breach. At this juncture, we maintain a negative trading bias until the commodity is able to close above the MYR2,825 mark.

We recommend that traders stick to short positions. We initiated these at MYR3,007, the closing level of 21 Sep. To manage risks, a stop-loss can be placed above MYR2,825

The immediate support is revised to MYR2,780 and MYR2,750 – both are derived from the latest candle. Moving up, the immediate resistance is set at MYR2,825, followed by MYR2,850.

Source: RHB Securities Research - 29 Sept 2020