Maintain long positions. The FCPO ended the latest session on a negative note. It settled MYR27 lower at MYR2,015 – intraday low and high were posted at MYR2,001 and MYR2,016. Nevertheless, the weak session did not alter the constructive bias for the commodity to extend its rebound, which started from the recent low of MYR1,940. Price performance over the recent sessions suggests the commodity is consolidating around the 30- day SMA line. Once this consolidation phase is over, we are expecting the commodity to rebound further to challenge the 50-day SMA line. Hence, we are keeping to our positive trading bias.

While the commodity did not show a strong follow-up from the prior positive session, given the rebound bias is still firmly in place, traders are advised to remain in long positions. We initiated these at MYR2,057, or the closing level of 22 Nov. A stop-loss can be placed below MYR1,940.

The immediate support is set at MYR1,940, the low of 27 Nov. This is followed by MYR1,863, the low of 25 Aug 2015. Moving up, the immediate resistance is set at MYR2,066, the high of 16 Nov. This is followed by MYR2,137, the low of 20 Sep.

Source: RHB Securities Research - 12 Dec 2018