Maintain long positions as the commodity is consolidating. The FCPO ended the latest session on a negative note. It settled MYR28 weaker at MYR2,157, while the low and high were at MYR2,156 and MYR2,184. The latest two sessions’ price actions indicate that it is in a consolidation phase after the recent relatively sharp upward move. Towards the downside, as long as the 100-day SMA line is not broken, the risk for the commodity to experience a deeper consolidation is relatively low. Hence, we keep to our positive trading bias.

As we have not seen any sign of a deeper retracement developing, 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 at below MYR2,099.

The immediate support remains at MYR2,099, the low of 17 Dec – located near the 100-day SMA line. The second support is at MYR2,000 mark. Moving up, the immediate resistance is still pegged at MYR2,200, the next round figure. This is followed by MYR2,265, the high of 17 Oct.

Source: RHB Securities Research - 24 Dec 2018