Highlights

RHB Retail Research

Author: rhboskres   |   Latest post: Fri, 16 Oct 2020, 6:09 PM

 

FCPO - Sideways Range Fails To Hold

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:09 PM


Maintain long positions. The FCPO formed a black candle to end the latest trade MYR71 weaker at MYR2,918 – the low was recorded at MYR2,910. In terms of price actions, the latest performance was a negative surprise to us as the commodity has nullified our expectations for it to extend its narrow sideway range of between MYR2,900 and MYR2,975, which was defined in the prior two sessions. This, in essence, has changed the nature of the consolidation phase from a sideways range to a deeper retracement. Should the MYR2,900 support fail in the coming sessions, this would open the door to a deeper retracement phase to develop. For now, we are keeping our positive trading bias.

We recommend that traders stick to long positions. We initiated these at MYR2,818, the closing level of 6 Oct. To manage risks, a stop-loss can be placed below MYR2,900.

The immediate support is revised to MYR2,900, followed by MYR2,850. On the upside, the immediate resistance is now eyed at MYR2,960, followed by the round figure of MYR3,000.

Source: RHB Securities Research - 16 Oct 2020

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FKLI - Falling Back into The 1,500-1,515-Pt Zone

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:08 PM


Maintain short positons. The FKLI softened 9 pts to close at 1,511.5 pts after failing to hold on to its earlier session’s positive posture, where it reached a high of 1,525.5 pts. The closing level placed the index back into the resistance zone of 1,500-1,515 pts. We continue to take the view that the index’s multi-week counter-trend rebound, which started from 11 Sep’s “Bullish Engulfing” pattern, ended after it was rejected from the 50-day SMA line recently. In a bigger picture, the index is likely in the process of extending its correction phase that started from end-Jul’s “Double Top” formation. A downside breach of the 200-day SMA line would confirm our thesis. Maintain our negative trading bias.

We recommend that traders stick to short positons. We initiated these at 1,510 pts, the closing level of 12 Oct. To manage risks, a stop-loss can be placed above 1,540 pts.

The immediate support is revised to 1,500 pts, followed by 1,483.5 pts – the low of 24 Sep. Conversely, the immediate resistance is now set at 1,515 pts, followed by 1,540 pts.

Source: RHB Securities Research - 16 Oct 2020

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E-Mini Dow - 16 October 2020

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:06 PM


Maintain long positions. The E-mini Dow experienced a sharp positive price reversal during its latest session – it rebounded from a low of 28,025 pts to close at 28,386 pts, ie a minor 28-pt decline. Consequently, a “Hammer” formation has appeared, indicating a good possibility the index’s recent sessions’ corrections may have reached an end and that the bulls are ready to extend the E-mini Dow’s upward move above the 50-day SMA line. Towards the downside, we now believe our positive trading thesis should stay valid – provided the 28,200-pt support level does not fail.

We recommend traders stay in long positions. We initiated these at 28,179 pts, or the closing level of 7 Oct. For risk-management purposes, a stop-loss can be placed at below the 28,200-pt threshold.

We revise the immediate support level to 28,200 pts – this is followed by the 28,000-pt round figure, which was also near the latest low. Conversely, the immediate resistance is now pegged at the 28,500-pt mark and followed by 28,846 pts, ie the high of 12 Oct.

Source: RHB Securities Research - 16 Oct 2020

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COMEX Gold - Clinging on the 20-day SMA Line

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:04 PM


Maintain long positions. The COMEX Gold has consolidated near the 20-day SMA line, gaining USD1.60 to close at USD1,908.90. The precious metal started the session at USD1,906, dipping towards the session’s low at USD1,892.70 before rebounding 20.5 pts towards the USD1,913.20 high. The momentum indicator RSI fell below the 50% threshold level, indicating that we might see a tight trading range or sideways movement ahead. Since the higher lows pattern, which started since the USD1,851 level, has remained intact, we maintain our positive trading bias.

We recommend traders stay in long positions. We initiated these positions at USD1,903.20, or the closing level of 29 Sep. For risk-management purposes, a stop-loss set at the USD1,880 mark.

The immediate support level is marked at USD1,880, or the low of 29 Sep. This is followed by USD1,851, which was 28 Sep’s low. Meanwhile, the immediate resistance is maintained at the USD1,927 threshold and followed by USD1,968.20, ie the high of 18 Sep.

Source: RHB Securities Research - 16 Oct 2020

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WTI Crude - a Wild Session

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:03 PM


Maintain long positions, as the bulls are keeping prices above the 50-day SMA line. The WTI Crude experienced a wide trading range during its latest session. The low and high were recorded at USD39.22 (to test the USD40.00 and USD39.22 support levels) and USD41.29 before it closed mildly lower by USD0.08 to USD40.96. Despite the volatile performance, the bulls were still showing control towards the end of the session and managed to maintain prices above the 50-day SMA line. We are still expecting the USD41.49 resistance to be tested or crossed before looking for possible price reversal signals to mark an end to the ongoing multi-week counter-trend rebound, which started from 9 Sep’s “Bullish Harami” formation. We maintain our positive trading bias.

With no price exhaustion signal spotted, we recommend traders stay in long positions. We initiated these at USD39.22, or the closing level of 5 Oct. To manage risks, a stop-loss can be placed below the USD40.00 mark.

The immediate support is revised to the USD40.00 round figure and followed by USD39.22. Conversely, the immediate resistance is now eyed at 18 Sep’s high of USD41.49 and followed by the USD42.00 level.

Source: RHB Securities Research - 16 Oct 2020

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Hang Seng Index Futures - Rejected From the 50-Day SMA Line

Author: rhboskres   |  Publish date: Fri, 16 Oct 2020, 6:02 PM


Maintain long positions. The HSIF has sold down from the 50-day SMA line, closing 446 pts lower vis-à-vis the previous session. The index started the day’s session at 24,480 pts – briefly trading at the 24,565-pt session high – before correcting 483 pts to a session low of 24,057 pts. During the night session, the HSIF pared some of the losses that occurred during the morning session, opening at 24,082 pts to touch the session low at 23,982 pts. It rebounded 182 pts to the evening session’s 24,164-pt high – the last trade was at 24,162 pts. Just like what we had predicted – a wide trading range – we saw a 580-pt movement, ie the difference of the session’s high and low of 24,565 pts and 23,982 pts. We are now expecting some buying interest to emerge near the support level, or somewhere close to the 20-day SMA line. Despite the weak price action, we maintain our positive trading bias.

We recommend traders stay in long positions. We initiated these positions at 23,951 pts, or the closing level of 6 Oct. For risk-management purposes, a stop-loss level is marked at 23,880 pts, ie the day’s low on 7 Oct.

The immediate support level is earmarked at 23,880 pts and followed by the 23,600-pt mark. On the upside, the immediate resistance is eyed at 15 Oct’s day high – 24,648 pts – and followed by 24,898 pts

Source: RHB Securities Research - 16 Oct 2020

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