Maintain long positions. The FCPO slid MYR22 to close at MYR2,135 in the latest session. The low and high were registered at MYR2,126 and MYR2,154. That said, the commodity’s rebound phase – for which we had projected as a correction (at the minimum) for its recent sharp retracement that started from the high of MYR2,344 on 7 Feb – has not been as strong as we anticipated. The FCPO trended south after testing the 200- day SMA line on 4 Mar. Nevertheless, if the low of the “Bullish Engulfing” formation of MYR2,115 is not breached, the commodity may still be able to extend its rebound. As such, we keep to our long bias.

We continue to recommend traders keep to long positions, ie opening at MYR2,189, where the commodity settled on 1 Mar. To manage risks, a stop-loss can be placed below the MYR2,115 level.

The immediate support is set at MYR2,093, or the low of 26 Dec 2017. This is followed by MYR1,940, which was the low of 27 Nov 2018. Moving up, the immediate resistance is now at MYR2,278, ie the high of 25 Feb. This is followed by MYR2,344, which was the high of 7 Feb.

Source: RHB Securities Research - 8 Mar 2019