Maintain long positions. The FCPO formed a white candle in the latest session to settle at MYR2,261, indicating a gain of MYR17. The intraday tone was encouraging – it generally scaled higher throughout the session, with low and high posted at MYR2,245 and MYR2,265. The positive session can be seen as the follow-through from the previous session’s breakout from the 30-day and 50-day SMA lines. This implies the rebound, from the low of MYR2,137 on 20 Sep, continues to extend. For a deeper rebound to possibly take place, the immediate resistance of MYR2,303 needs to be decisively breached. Based on these observations, we maintain our positive trading bias.

Given that the rebound continues to play out, we still recommend traders keep to long positions. To recap, we initiate these positions at MYR2,244, the closing level of 16 Oct. For risk management purposes, a stop-loss can be placed below MYR2,153.

The immediate support is expected at MYR2,153, the low of 11 Oct. The following support is at MYR2,137, the low of 20 Sep. Conversely, the immediate resistance is set at MYR2,303, the high of 5 Sep. This is followed by MYR2,348, the high of 29 Jun.

Source: RHB Securities Research - 18 Oct 2018