Upward move has likely resumed; maintain long positions. The FCPO formed a white candle to settle MYR21 higher at MYR2,222. This was after it reached a low and high of MYR2,186 and MYR2,233. The positive session is a follow-up from the previous session’s encouraging performance. This supports our view that the commodity’s near-2- week price correction (after its previous rally reached an overbought condition) has been completed, and chances are high that it is extending its upward move. We maintain our positive trading tone.

As the bulls look ready to extend the commodity’s multi-month upward move, 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.

We are keeping the immediate support at MYR2,150, ie the low of 20 Aug. This is followed by MYR2,100, 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.

Source: RHB Securities Research - 11 Sept 2019