Maintain long positions as price actions are still positive. The FCPO tested the MYR2,300 round figure mark in the latest session, with an intraday high of MYR2,312. This was before it settled at MYR2,269, indicating a gain of MYR7. While the commodity was not able to close above the MYR2,300 level, there was no indication to suggest its upward move has reached a limit – this is despite its RSI flashing out an overbought reading. For now, provided the immediate support of MRY2,150 is not breached, the risk of the commodity undergoing a deep retracement is relatively low. We maintain our positive trading bias.

As the commodity’s upward move is still intact, traders are recommended to remain in long positions. We initiated these at MYR2,256, the closing level of 22 Aug. For risk management purposes, a stop-loss can be placed below the MYR2,150 level.

Immediate support is set at MYR2,150, the low of 20 Aug. This is followed by MYR2,100, near the 200-day SMA line. Meanwhile, the immediate resistance is set at MYR2,344, the high of 7 Feb. This is followed by MYR2,400, the next round figure.

Source: RHB Securities Research - 27 Aug 2019