Maintain short positions. The FCPO closed MYR45.00 weaker at MYR2,777 yesterday, after failing to sustain its earlier session’s positive tone where the price reached a high of MYR2,847. Price actions over the past three sessions indicate that a rebound phase is taking place around the 50-day and the multi-week uptrend lines. Towards the downside, a breach of the MYR2,725 support would likely lead to the retracement phase – which started from the 21 Sep’s “Bearish Engulfing” formation – resuming. On the upside, a close above MYR2,825 could see the abovementioned rebound being extended. For now, we are maintaining a negative trading bias.

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 MYR2,750 – a price point of 28 Sep. This is followed by MYR2,725, the low of 25 Sep. Towards the upside, the immediate resistance is set at MYR2,825, followed by MYR2,870.

Source: RHB Securities Research - 30 Sep  2020