RHB Retail Research

FCPO - Still Rebounding

rhboskres
Publish date: Wed, 15 Aug 2018, 05:30 PM
rhboskres
0 9,021
RHB Retail Research

Maintain long positions. The FCPO performed positively in the latest session, closing MYR9 higher at MYR2,213, This is after it oscillated between a low and high of MYR2,195 and MYR2,217. As a trend, as long as the immediate support of MYR2,176 is not invalidated at the closing, the bias for the commodity to extend its rebound that started from the low of MYR2,140 on 25 Jul would still be valid – with the bias to test the 50-day SMA line. A downside break of the said immediate support may increase the likelihood for the commodity to resume its YTD downtrend. Until that happens, we maintain our near-term positive trading bias.

As the bias to extend its rebound phase is still valid, we continue to recommend that traders maintain long positions – initiated at MYR2,211, or the closing level of 18 Jul. For risk management purposes, a stop-loss can be set at MYR2,176.

For immediate support, we have our sights on MYR2,176, the low of 31 Jul. The second support is set at MYR2,140, the low point of 25 Jul. On the flip side, the immediate resistance is pegged at MYR2,272, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 15 Aug 2018

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