Maintain long positions. Last Friday, the FCPO failed to sustain its earlier session’s positive tone, and fell into a decline – at one point, it came close to testing the low of the recent “Bullish Engulfing” formation of MYR2,115. The session’s low and high were at 2,116 and MYR2,158, before the commodity closed at MYR2,125, indicating a decline of MYR10. Overall, its rebound – after the relatively sharp retracement from the high of MYR2,344 – has been weaker than expected. In the rebound, the FCPO tested the 200-day SMA line before returning to the MYR2,115 area in the latest session. As long as this level is not breached, we retain our long bias.

Until the low of the “Bullish Engulfing” is invalidated, we continue to suggest that traders keep to long positions. These 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 still pegged at MYR2,093, the low of 26 Dec 2017. This is followed by MYR1,940, the low of 27 Nov 2018. Conversely, the immediate resistance is set at MYR2,278, the high of 25 Feb. This is followed by MYR2,433, the high of 7 Feb.

Source: RHB Securities Research - 11 Mar 2019