Maintain long positions. The FCPO failed to rebound despite our anticipation for it to occur in the latest session. It dropped MYR16 to end at MYR2,120. The session’s low and high were recorded at MYR2,106 and MYR2,131. The commodity failed to continue to extend its rebound from the prior session and resume its rebound towards the 200-day SMA line. Nevertheless, for now, provided the immediate support of MYR2,038 is not breached, we keep to our positive trading bias.

As chances for the commodity to retest the 200-day SMA line are still high, 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 stoploss can be placed at below MYR2,038.

The immediate support is expected at MYR2,038, the low of 15 Mar. The second support is eyed at MYR1,940, the low of 27 Nov 2018. Moving up, 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 - 29 Mar 2019