Maintain long positions as the bulls charge ahead. The FCPO continued to mark a higher close in the latest session. At the closing, it managed to cross above both the previous immediate resistance of MYR2,265 and the 200-day SMA line. The session’s low and high were posted at MYR2,250 and MYR2,288, before closing at MYR2,283, indicating a gain of MYR20. The latest positive session suggests the rebound that started from the low of MYR1,940 on 27 Nov 2018 is extending. The daily RSI has flashed out a slightly overbought reading of 70.9. Nevertheless, until price reversal signals emerge, we keep to our positive trading bias.

With the bulls continuing to be on the driver’s seat without showing signs of exhaustions, traders are advised to stay in long positions. We initiated these at MYR2,226, the closing level of 18 Jan. For risk management purposes, a trailing-stop can be placed at the breakeven level.

The immediate support is expected at MYR2,134, the low of 14 Jan. This is followed by MYR2,093, the low of 26 Dec 2018. Moving up, the immediate resistance is now expected at MYR2,303, the high of 5 Sep 2018. This is followed by MYR2,348, which was the high of 29 Jun 2018.

Source: RHB Securities Research - 24 Jan 2019