Maintain long positions while moving trailing-stop up. The FCPO formed a black candle in the latest session, as it fell MYR27 to end at MYR2,140. Intraday tone was negative as it generally slid lower, the high and low were posted at MYR2,156 and MYR2,133. Nevertheless, the likelihood for the commodity to extend its rebound is still high. The latest three sessions’ price actions are indicative of a consolidation taking place to correct the rebound that started from the low of MYR2,038. Until we see further negative price actions, we maintain our positive trading bias.

Given there is lack of evidence to suggest the commodity’s rebound leg has reached an end, we continue to recommend traders stay in long positions. These were initiated at MYR2,164, which was the closing level of 21 Mar. A stop-loss can be placed at below MYR2,038.

The immediate support is maintained at MYR2,038, the low of 15 Mar. The second support is at MYR1,940, the low of 27 Nov 2018. On the other hand, the immediate resistance is expected at MYR2,217, the high of 4 Feb and near the 200-day SMA. This is followed by MYR2,278, which was the high of 25 Feb.

Source: RHB Securities Research - 26 Mar 2019