Maintain long positions as rebound is showing signs of developing. The FCPO formed a white candle in the latest session to settle at MYR2,032 – indicating a gain of MYR17. The session’s low and high were at MYR2,019 and MYR2,041 respectively. Overall, we continue to see the commodity in the process of developing a deeper rebound. Recent price actions indicate that the commodity is consolidating around the 30-day SMA line – which is currently located near the immediate resistance of MYR2,066. Once this consolidation phase is completed, chances are high the commodity would test the 50-day SMA line. Based on this, we keep to our positive trading bias.

As we continue to see the commodity at least test the 50-day SMA line – suggesting bias for a further upside – 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.

We are keeping the immediate support at MYR1,940, the low of 27 Nov. The following support is at MYR1,863, the low of 25 Aug 2015. On the other hand, the immediate resistance is eyed at MYR2,066, the high of 16 Nov. This is followed by MYR2,137, the low of 20 Sep.

Source: RHB Securities Research - 13 Dec 2018