Maintain long positions. Yesterday, the FCPO formed a white candle. The session’s low and high were at MYR2,226 and MYR2,243, before it ended at MYR2,237, ie a MYR13 gain. This can be seen as a positive followup from the prior session, when the 50-day SMA line was tested. On the broader picture, provided the immediate support of MYR2,153 is not broken, the bias for the commodity to extend its rebound should still be valid. Hence, we maintain our positive trading bias.

As the commodity is bouncing off from the 50-day SMA line, we continue to recommend that traders keep to long positions. To recap, we initiate these positions at MYR2,244, or the closing level of 16 Oct. To manage risks, a stop-loss can be placed below MYR2,153.

Towards the downside, immediate support is set at MYR2,153, the low of 11 Oct. This is followed by MYR2,137, the low of 20 Sep. On the other hand, 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 - 23 Oct 2018