Maintain short positions. The FCPO failed to move past the 200-day SMA line, and closed MYR1.00 lower, at MYR3,390 yesterday. It opened stronger at MYR3,432, then tapped the intra-day high of MYR3,499 before reversing direction to print the intra-day low of MYR3,375. The latest price action shows that selling pressure is prevailing near the 200-day SMA line (MYR3,487). Until commodity reclaims a spot above the 200-day SMA line, there is high probability that it will resume trending south towards the immediate support level of MYR3,298. As such, we maintain a negative trading bias until the traling stop is breached.

Traders should stay in short positions. We initiated these at the closing level of 8 Jun, or MYR4,049. To manage risks and protect profits, the trailing-stop is still at MYR3,500.

The support levels are set at MYR3,298 – the low of 14 Jun –then MYR3,160, or the 20 Jan’s low. Towards the upside, the resistance levels are unchanged at MYR3,460 – the high of 18 Jun – followed by MYR3,550, or 14 Jun’s high.

Source: RHB Securities Research - 28 Jun 2021