Maintain short positions. The FCPO continued to edge higher, rising MYR63.00 from its previous session to settle at MYR3,802. Yesterday, the commodity started the session at MYR3,744. It found its footing at MYR3,716 and climbed to the day’s high of MYR3,819 – breaching the MYR3,800 psychological resistance level. Meanwhile, the RSI indicator breached above the downtrend line, suggesting that positive momentum is building up. Although the commodity has risen above the psychological resistance level amid bullish momentum, it has yet to breach above the stop-loss level. As such, we keep to a negative trading bias.

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

The immediate support level is revised to 1 Apr’s low of MYR3,650, followed by 18 Feb’s low of MYR3,461. Towards the upside, the immediate resistance is moved to 25 Mar’s low of MYR3,826, followed by 8 Mar’s high of MYR4,011.

Source: RHB Securities Research - 7 Apr 2021