Maintain long positions as there are no signs of price exhaustion. The FCPO continued to march higher in the latest session. At the closing, it ended MYR14 higher at MYR2,297 near the session’s high of MYR2,298, while the low was at MYR2,246. The positive session has effective pushed the commodity further above the 200- day SMA line and closer to test the immediate resistance of MYR2,303. While the daily RSI has flashed out an early reading of an overbought condition, in the absence of a price reversal, the overall upward move is still firmly intact. Hence, we keep to our positive trading bias.

As the rebound continues to play out without showing any signs of exhaustion, 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 trailingstop can be placed at the breakeven level.

The immediate support is revised to MYR2,200, a round figure. This is followed by MYR2,134, the low of 14 Jan.. Moving up, the immediate resistance is now expected at MYR2,303, the high of 5 Sep 2018. This is followed by this is followed by MYR2,348, which was the high of 29 Jun 2018.

Source: RHB Securities Research - 25 Jan 2019