Maintain long positions as the bulls are still pushing ahead despite being overbought. The FCPO continued to perform positively in the latest session. This was despite its RSI flashing out an overbought reading. At the closing, the commodity added MYR6 to close at MYR2,262 – trading range was between MYR2,235 and MYR2,271. Overall, the commodity’s upward move is still intact – this was after it recently completed a narrow consolidation phase that happened between 15 Aug and 20 Aug. In the absence of adverse price actions that may indicate the upward move has run out of steam, we keep to our positive trading bias.

As the bulls continue to show control over the price trend, traders are advised to stay 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.

We are eyeing the immediate support at MYR2,150, the low of 20 Aug. This is followed by MYR2,100, near the 200- day SMA line. On the other hand, 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 - 28 Aug 2019