No price rejection from the 200-day SMA line; maintain long positions. The FCPO ended the latest session marginally higher by MYR2 at MYR2,104 – at one point, it tested the 200-day SMA line. Trading happened in the range of MYR2,091 and MYR2,109. The commodity has been seen testing the said SMA over the recent two sessions. At this juncture, there is no negative price reaction from the said SMA line, which if it does happen, could indicate a possible price rejection. As such, we deem the counter-trend rebound that started from the low of MYR1,916 on 1 Jul as still intact. Maintain our positive trading bias.

As the rebound phase is still showing a good sign of progressing, traders are advised to remain in long positions. We initiated these at MYR2,029, the closing level of 24 Jul. For risk management purposes, a stop-loss can now be placed at the breakeven level.

The immediate support is set at MYR2,008, 23 Jul’s high. This is followed by MYR1,916, the low of 10 Jul. On the other hand, the immediate resistance is set at MYR2,115, the high of 29 May. This is followed by MYR2,156, the low of 26 Apr.

Source: RHB Securities Research - 8 Aug 2019