Maintain long positions on the expectation that a rebound is still possible. The FCPO was seen trading in the sideways manner during the latest session – this comes after the previous session’s sharp intraday price reversal from the 200-day SMA line. Trading happened in the range of MYR2,143 and MYR2,178, before closing MYR12 better at MYR2,161. Overall, we are still expecting the commodity, which is still in the process of developing to, at the minimum, rebound and correct its recent sharp decline that started from the high of MYR2,344. This bias would remain valid provided the low of the recent “Bullish Engulfing” is not breached. Maintain long bias.

As the bias for the commodity to develop a rebound is still valid, we continue to suggest traders keep to long positions. These positions were opened at MYR2,189, the closing level of 1 Mar. To manage risks, a stop-loss can be placed below MYR2,115.

The immediate support is set at MYR2,093, the low of 26 Dec 2017. The second support is at MYR1,940, the low of 27 Nov 2018. On the other hand, the immediate resistance is set at MYR2,278, the high of 25 Feb. This is followed by MYR2,344, which was the high of 7 Feb.

Source: RHB Securities Research - 6 Mar 2019