Maintain long positions. The FCPO registered a gain of MYR12 to close at MYR2,212. The low and high were posted at MYR2,210 and MYR2,232. We maintain our view that the commodity is still in the process of developing a minor consolidation, after it reached a high of MYR2,235 on 5 Mar. This minor consolidation is still considered as healthy – to correct its recent upward move. At this juncture, there is no indication that this consolidation would take the shape of a deeper price retracement. Based on these, we maintain our positive trading bias.

As the said consolidation phase still looks to develop in the shape of a relatively narrow sideways pattern, 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.

Towards the downside, the immediate support is eyed at 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 at MYR2,278, or 25 Feb’s high. This is followed by MYR2,344, the high of 7 Feb.

Source: RHB Securities Research - 10 Apr 2019