Maintain short positions. Selling pressure eased yesterday, and the FCPO closed MYR40.00 higher, at MYR3,937. The commodity started the session at MYR3,901. Shortly after the session started, the commodity found a footing near the day’s low of MYR3,872 before climbing towards the high of MYR3,981. Since the previous selling pressure did not follow through, the commodity will likely consolidate sideways in the sessions ahead. As long as it can stay above MYR3,827, expect the bulls to retest the psychological level of MYR4,000 in the coming sessions. Otherwise, breaching the MYR3,827 level would see the FCPO possibly dropping towards a lower support level near MYR3,750. Until the bulls emerge again, we make no change to our negative trading bias.

We recommend traders to shift to short positions that were initiated at MYR3,897 or closing level of 16 Mar. To manage risks, we set the stop-loss at MYR4,040.

The nearest support is marked at 9 Mar’s low of MYR3,827, followed by MYR3,750. Towards the upside, the immediate resistance is kept at the psychological level of MYR4,000, followed by 16 Mar’s high of MYR4,059.

Source: RHB Securities Research - 18 Mar 2021