Maintain long positions, as the upward move continues to extend. The seed oil extended its positive price performance in the latest session. At the close, the FCPO settled MYR44 stronger at MYR2,179, with the low and high recorded at MYR2,149 and MYR2,185. The closing level meant the previous MYR2,156 immediate resistance has been crossed. The latest performance is a positive follow-up from the prior session’s upside breach of the 200-day SMA line. While we note that the Daily RSI is flashing out an overbought reading, in the absence of a price exhaustion signal, we keep to our positive trading bias.

On the observation that the bulls are still in firm control over the upward move, traders are advised to remain in long positions. We initiated these at MYR2,029, which was the closing level of 24 Jul. For risk-management purposes, a stop-loss can now be placed below the MYR2,049 level.

The immediate support is still expected at MYR2,049, which was the low of 31 Jul. This is followed by MYR1,916, or the low of 10 Jul. Moving up, the immediate resistance is now set at MYR2,235, ie the high of 5 Apr. This is followed by MYR2,344, which was the high of 7 Feb.

Source: RHB Securities Research - 13 Aug 2019