Maintain short positions. The FCPO underwent a technical rebound yesterday, but then retreated MYR37.00 to close at MYR4,929. The commodity initially gapped down and opened weaker at MYR4,870. After setting its foothold at the day’s low of MYR4,827, it pared down intraday losses and climbed to print the intraday high of MYR4,941 before closing. The latest session reaffirmed that strong support has been established at MYR4,816. The commodity may consolidate near the immediate support point, before climbing higher to retest the MYR5,000 psychological level. Meanwhile, breaching the immediate support will open the door for a further downtrend. For now, we maintain a bearish trading bias until the stop-loss is triggered.

Traders should maintain short positions, which were initiated at MYR4,924 or the closing level of 22 Oct. To mitigate the trading risks, the initial stop-loss has been set at MYR5,090.

The immediate support remains at MYR4,816 – 22 Oct’s low, followed by MYR4,753, or the low of 13 Oct. Towards the upside, the nearest resistance will be the MYR5,000 mark. The next hurdle is at MYR5,090 or the high of 20 Oct.

Source: RHB Securities Research - 29 Oct 2021