200-day SMA line marginally crossed; maintain long positions. The FCPO’s performance was encouraging in the latest session. At the closing, it breached above both the previous immediate resistance of MYR2,115 and 200-day SMA line – albeit marginally. The session’s low and high were recorded at MYR2,104 and MYR2,144, before closing MYR31 higher at MYR2,135. The positive session continues to suggest the rebound that started from the low of MYR1,916 is still extending. Despite the overbought Daily RSI reading, in the absence of a price reversal signals, we keep to our positive trading bias.

Given the bulls have managed to cross the said important SMA line, 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 below MYR2,049.

The immediate support is now set at MYR2,049, which was the low of 31 Jul. This is followed by MYR1,916, the low of 10 Jul. Moving up, the immediate resistance is now pegged at MYR2,156, the low of 26 Apr. This is to be followed by MYR2,235, the high of 5 Apr.

Source: RHB Securities Research - 9 Aug 2019