Rebound phase is still developing; maintain long positions. In its latest session, the FCPO formed a white candle, which breached above the 50-day SMA line – indicating the session was led by the bulls. Session's low and high were recorded at MYR2,218 and MYR2,252, before it closed at MYR2,248, indicating a gain of MYR31. As a trend, the commodity's rebound phase from the low of MYR2,140 on 25 Jul is still developing. As long as the immediate support of MYR2,176 is not breached, the bias for the commodity to extend its rebound would not be at risk. Based on this, we maintain our near-term positive trading bias.

As the commodity is once again showing signs of resuming its rebound and with the risk for the YTD retracement returning not imminent, we continue to recommend that traders maintain long positions – initiated at MYR2,211, or the closing level of 18 Jul. To manage risks, a stop-loss can be set at MYR2,176.

We maintain the immediate support at MYR2,176, the low of 31 Jul. This is followed by MYR2,140, the low of 25 Jul. On the flip side, the immediate resistance is expected at MYR2,272, or the high of 10 Jul. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 3 Sept 2018