Maintain long positions as the bulls are pushing ahead. The FCPO registered a MYR5 gain to end at MYR2,322 – the high was posted at MYR2,359 (briefly tested the immediate resistance of MYR2,344). Despite not being able to hold on to most of its intraday gains, we still see the positive performance as an encouraging follow-up from the previous session’s breakaway from MYR2,312 (the previous immediate resistance). All in, the upward move which resumed after the retesting of the 200-day SMA line at end-September is still progressing. Its RSI reading suggests the said upward move has yet to reach an overbought condition yet. We maintain our positive trading bias.

As the bulls are having a firm grip over the price trend, traders are advised to stay in long positions. These were initiated at MYR2,175, the closing level of 9 Sep. To manage risks, a stop loss can now be placed at the breakeven point.

Towards the downside, the immediate support is expected at MYR2,221, the high of 11 Oct. This is followed by MYR2,140, the low of 15 Oct. Meanwhile, the immediate resistance is pegged at MYR2,344, the high of 7 Feb, followed by MYR2,400.

Source: RHB Securities Research - 24 Oct 2019