Maintain long positions as the bulls are still in control. The FCPO staged a positive intraday price reversal in the latest session. At the closing, it settled MYR16 higher at MYR2,173 - the low and high were recorded at MYR2,140 and MYR2,174. The positive session came after the commodity filled the 9 Oct’s “Upside Gap” in the prior session. This can be seen as a positive indication that the bulls are still in control over the price trend. We are still seeing a strong possibility that the commodity is in the process of extending its upward move. This was after it retested the 200-day SMA line recently in a multi-week correction phase. Maintain our positive trading bias.

On the observation that the bulls are still in strong control, we continue to recommend that traders stay in long positions, initiated at MYR2,175, the closing level of 9 Sep. To manage risks, a stop-loss can be placed below MYR2,100.

We are keeping the immediate support target at MYR2,100, near the 200-day SMA line, followed by MYR2,000, a psychological level. On the other hand, the immediate resistance is set at MYR2,250, followed by MYR2,312, the high of 26 Aug.

Source: RHB Securities Research - 16 Oct 2019