Maintain long positions as the retracement has probably ended. The FCPO experienced a positive intraday reversal in the latest session. The commodity rebounded from the intraday low of MYR2,109 to close at MYR2,136, indicating a gain of MYR4. The intraday reversal may indicate the commodity’s retracement over the recent few sessions may have reached to an end. Chances are high that it may be able to resume its rebound which started from the low of MYR2,038 on 15 Mar. Towards the upside, at the minimum, we are expecting the commodity to march towards the 200-day SMA line. Maintain our positive bias.

As the latest session’s performance may indicate that the bulls are now ready to resume leadership, we continue to recommend that 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 set at MYR2,038, the low of 15 Mar. This is followed by 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 - 28 Mar 2019