Maintain long positions as the bulls are still in control. The FCPO staged an intraday reversal in the latest session – the low was recorded at MYR2,163. At the closing it settled at MYR2,201, indicating a gain of MRY19. Overall, the commodity’s upward move is still firmly in place. The latest session’s positive price reversal suggests that the recent price consolidation phase may have ended – implying that chances are high for the commodity to resume its upward move in the coming sessions. The consolidation phase set in after the RSI flashed an overbought reading. As such, we keep to our positive trading bias.

On the expectation that the commodity is ready to resume its uptrend, traders should remain in long positions. We initiated these at MYR2,256, the closing level of 22 Aug. To manage risks, a stop-loss can be placed below the MYR2,150 level.

The immediate support is pegged at MYR2,150, ie 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, or the high of 7 Feb. This is followed by MYR2,400 – the next round figure.

Source: RHB Securities Research - 10 Sept 2019