Maintain long positions as the rebound may not have reached an end yet. The FCPO continued to ease in the latest session. It closed MYR14 weaker at MYR2,106, the low and high were posted at MYR2,095 and MYR2,112. The weak session indicates that the commodity’s over 1-week’s consolidation, which started from the high of MYR2,184 on 21 Mar, is still not showing signs of ending. On the broader picture, once this consolidation phase is over, chances are high that the said rebound phase would likely resume, with the minimum target of retesting the 200-day SMA line. Maintain our positive trading bias.

As the bias for the commodity to extend its rebound is still valid, 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.

Towards the downside, the immediate support is set at MYR2,038, the low of 15 Mar. The second support is eyed at MYR1,940, the low of 27 Nov 2018. Conversely, 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 - 1 Apr 2019