Maintain short positions. The FCPO moved sideways and closed just MYR2.00 higher from its previous session at MYR3,739. The commodity started the session at MYR3,750 before rapidly jumping to the day’s high of MYR3,798. It then fell down to the day’s low of MYR3,703 prior to settling at MYR3,739 – it has yet to form a “higher high” bullish pattern. Meanwhile, the RSI indicator stays at the downtrend line, which suggests the recent sideways trend may bias towards bearish. Before the FCPO breaching above the MYR3,800 psychological level to claim a “higher high” formation, we remain cautious on the downside risk and expect the rebound momentum to be short lived. As such, we keep to a negative trading bias.

We recommend traders stay short positions, which were initiated at MYR3,692, or the closing level of 26 Mar. To manage risks, a stop-loss level is placed at 25 Mar’s low of MYR3,826.

The support levels stay at 18 Feb’s low of MYR3,461 and 3 Feb’s MYR3,210 low. Towards the upside, the immediate resistance remains at the MYR3,800 psychological level, followed by 25 Mar’s low of MYR3,826.

Source: RHB Securities Research - 6 Apr 2021