Maintain long positions while tightening-up the stop-loss. The FCPO failed to sustain its intraday gains. At the closing, it settled MYR16 softer at MYR2,206 – the low and high were recorded at MYR2,203 and MYR2,240. Despite the weak session, we still see the commodity’s multi-month upward move as still intact. Additionally, we also believe its recent near-2-week price correction has been completed, with a low of MYR2,163 on 5-6 Sep. For now, provided this point is not breached towards the downside, we keep to our positive trading bias.

On the observation that the bulls are still in good control over the price trend, 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 MYR2,163.

Towards the downside, 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 - 17 Sept 2019