Maintain long positions while moving the trailing-stop to breakeven. The FCPO settled the latest session positively. At the closing, it added MYR7 to settle at MYR2,259 – after it reached a low and high of MYR2,248 and MYR2,274. The positive session is a follow-up from the prior session’s “Upside Gap” – indicating the bulls still have a firm control over the price trend. On a bigger picture, we continue to see the commodity in the path of extending its multi-month upward move – after it completed a multi-week correction at end-September. Maintain our positive trading bias.

As the upward move is still showing signs of extending, we maintain our recommendation that traders stay in long positions, initiated at MYR2,175, the closing level of 9 Sep. To manage risks, a stop-loss can now be placed at the breakeven level.

The immediate support is set at MYR2,140, which was the low of 15 Oct. This is followed by MYR2,100, near the 200- day SMA line. Towards the upside, the immediate resistance is eyed at MYR2,312, the high of 26 Aug. This is followed by MYR2,344, the high of 7 Feb.

Source: RHB Securities Research - 18 Oct 2019