Maintain long positions given the rebound phase is still developing. The FCPO had a positive performance in Friday’s session. Intraday, it came close to test the immediate support of MYR2,176 with the low registered at MYR2,179. The bulls emerged from this point and pushed the commodity to end at MYR2,196 – MYR5 gain. The session’s high was posted at MYR2,198. Given the immediate support is still holding, this suggests the corrective rebound that has been in development since the low of MYR2,140 on 25 Jul remains in place. It was triggered as the commodity’s YTD steep retracement reached an oversold level in July. On this, we maintain our near-term positive trading bias.

As the commodity is still showing signs of extending its rebound and may still be able to retest the 30-day SMA line in the near-term, we continue to recommend that traders maintain long positions, initiated at MYR2,211, or the closing level of 18 Jul. For risk management purposes, we revise the stop-loss to MYR2,176.

Immediate support is pegged at MYR2,176, the low of 31 Jul. This is followed by MYR2,140, which is the low point of 25 Jul. On the flips side, we maintain the immediate resistance at MYR2,272, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 6 Aug 2018