Maintain long positions as the previous immediate resistance is breached. The FCPO performed positively in the latest trading and at the closing, marginally breached above the previous immediate resistance of MYR2,217. The session’s low and high were posted at MYR2,199 and MYR2,235, before closing at MYR2,224, implying a gain of MYR20. The upside breach of the said previous immediate resistance has also, in our view, signalled a valid break of the 200-day SMA line – thus enhancing the positive bias. Maintain our positive trading bias.

Given that the commodity has extended its rebound beyond the 200-day SMA, we continue to recommend that traders stay in long positions. These were initiated at MYR2,164, the closing level of 21 Mar. A stop-loss can be placed at the breakeven level.

The immediate support is revised to MYR2,095, the low of 29 Mar. This is followed by MYR2,038, the low of 15 Mar. Moving up, the immediate resistance is now envisaged at MYR2,278, or 25 Feb’s high. This is followed by MYR2,344, the high of 7 Feb.

Source: RHB Securities Research - 8 Apr 2019