Maintain short positions. The FCPO staged a strong rebound yesterday, climbing MYR95.00 to close at MYR3,070. Based on the candlestick pattern formation, the latest candle is trying to pierce through the bearish candle formed on 30 Oct. The latest session saw the commodity trading within a 95-pt range, between 3,078 pts and 3,006 pts. Comparatively, 30 Oct’s session was a bearish one, with a wider trading range of 125 pts. As such, we believe that the bears remain in the driver’s seat. Until the commodity breaches the resistance level of MYR3,123, we make no change to our negative trading bias.

We recommend that traders stick to short positions. We initiated these a MYR3,011, the closing level of 30 Oct. To manage risks, a stop-loss can be placed above MYR3,123.

The immediate support is set at MYR2,970, followed by MYR2,940. Moving up, the immediate resistance is now at MYR3,084 – the high of 27 Oct – followed by MYR3,123.

Source: RHB Securities Research - 9 Nov 2020