Upward move still strong; maintain long positions. The FCPO reversed its earlier session’s loss and settled MYR7 higher to close at MYR2,219. The low and high were recorded at MYR2,183 and MYR2,223. The overall upward move that began from the low of MYR1,916 is still firmly in place – further supported by the fact that it is trading well above the 200-day SMA line. While the increasingly stretched overbought RSI reading is a cause for concern, in the absence of a price exhaustion signal, we retain our positive trading bias.

In the absence of adverse price actions that could signal an end to the commodity’s upward move, traders are advised to remain in long positions. We initiated these at MYR2,029, the closing level of 24 Jul. To manage risks, a stop-loss can be placed below the MYR2,100 level.

We revised the immediate support target to MYR2,100, which is near the 200-day SMA line. This is followed by MYR2,049, the low of 31 Jul. Moving up, immediate resistance is expected at MYR2,235, the high of 5 Apr. This is followed by MYR2,344, the high of 7 Feb.

Source: RHB Securities Research - 15 Aug 2019