Keep to long positions. Yesterday, FCPO performed weakly, as it formed a black candle and closed below the previous immediate support level of MYR2,324. The session’s low and high were recorded at MYR2,305 and MYR2,325, before ending MYR27 weaker at MYR2,307. Despite the weak session, as long as the MYR2,300 immediate support is not breached, the rebound from the said level that started from 13 Jun would remain valid. The rebound kicked in after the RSI came near to the oversold level on 12 Jun. On this, we are keeping to our near-term positive trading bias.

We continue to recommend traders to keep to long positions initiated at MYR2,334, the closing level of 14 June. To manage risks, a stop-loss can be set at below MYR2,300.

The immediate support is revised to MYR2,300, which is a round figure. Breaking this may see the market test MYR2,253, the low of 26 Jul 2016. On the upside, the immediate resistance is now set at MYR2,324, the low of 4 May. This is followed by MYR2,413, the high of 6 Jun.

Source: RHB Securities Research - 19 Jun 2018