We believe that price is currently correction a longer period uptrend. The uptrend is based on:
1) Upward trendline and price above moving average (Chart 3),
2) Break above early year high of 87, and staying above it more than a week.
However, on a very short term basis, price is on a correction as:
1) Upward trendline from 23 Nov is broken, and
2) price is making lower high, red lines on Chart 1.
Given the longer term upward bias, buying is expected to resume. But buyers will only get an upper hand if price can trade above the red lines, the lowest at 89 and has to trade above 91 to confirm the strength. Otherwise expect selling pressure to continue, especially on close below 87. The fibonacci retracement levels are 86.7 (38.2%), 85.4 (50%) and 84.2 (61.8%)
Note that the break of green triangle was not followed by selloff which is positive for buyers. At the same time, energy related stocks at NYSE had a good close last Friday despite the 3 day commodity correction. So there are few things going for buyers, but again strength has to be confirmed by break above the red lines.
Similarly, WTI crude has to trade above MYR 280 to confirm the bullish bias.
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