Still holding above the immediate support; maintain long positions. The FCPO managed to recoup most of its intraday losses. At the closing, it eased MYR5 at MYR2,182, with the low at MYR2,163. While the commodity has been in a retracement mode over recent sessions – after testing the MYR2,300 resistance mark – the characteristics of the retracement is still indicative of a consolidation taking place. This is meant to correct the previous upward move which reached an overbought RSI reading. The risk for a deeper retracement to develop may emerge, should the immediate support of MYR2,150 be breached. For now, we maintain our positive trading bias.

As there is no indication for a deeper retracement to develop, traders are advised to remain in long positions. We initiated these at MYR2,256, or the closing level of 22 Aug. For risk-management purposes, a stop-loss can be placed below the MYR2,150 level.

The immediate support is set at MYR2,150, ie the low of 20 Aug. This is followed by MYR2,100, which is near the 200- day SMA line. Moving up, the immediate resistance is set at MYR2,344, or the high of 7 Feb. This is followed by MYR2,400 – the next round figure.

Source: RHB Securities Research - 6 Sept 2019