Maintain short positions. The FCPO failed to sustain its bullish momentum, paring down intraday gains and then closing MYR29.00 weaker, at MYR3,863. Yesterday, the commodity initially gapped up, opening stronger at MYR3,954. It only managed to hit the day’s high of MYR3,962 before retracing towards the intraday low of MYR3,843. Over the past four sessions, the commodity has been moving up with “higher lows” charted. If it breaches MYR3,900 in the coming session, it may form a fresh “higher high” – which points to the resumption of an upward movement. Before that happens, the commodity may continue to meander below the 50-day SMA line (MYR3,880). We make no change to our negative trading bias.
Traders should maintain short positions. We initiated these at the closing level of 7 Jul at MYR3,795. To manage risks, the stop-loss is set at MYR3,940.
The support levels are maintained at MYR3,711 (7 Jul’s low), followed by MYR3,650. Towards the upside, the immediate resistance level is set at MYR3,900 psychological level, and subsequently at MYR3,978 - 6 Jul’s high.
Source: RHB Securities Research - 13 Jul 2021
Created by rhboskres | Aug 26, 2024