Maintain long positions as the commodity is still holding above MYR2,115. The FCPO shed MYR3 to close at MYR2,116 yesterday. The commodity failed to maintain the earlier session’s positive tone where, at one point, it reached a high of MYR2,140. The low was MYR2,114. As we have mentioned previously, if the MYR2,115 level is not breached at the close, we make no change to our positive trading tone. This is premised on the expectation that the commodity may still be able to pose a rebound – at the minimum, to correct its recent retracement that started from the high of MYR2,433.

In the absence of a negative price confirmation that indicates the retracement is resuming, traders are advised to remain in long positions. These were opened at MYR2,189, the closing level of 1 Mar. To manage risks, a stoploss can be placed below MYR2,115.

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

Source: RHB Securities Research - 13 Mar 2019