Maintain long positions as the “Bearish Harami” has been invalidated. The FCPO formed a white candle which, at the closing, invalidated the previous session’s “Bearish Harami” formation. Trading ranged between MYR2,454 and MYR2,532, before the commodity closed MYR68 higher, at MYR2,529. The closing level also crossed above the previous immediate resistance of MYR2,500. The session continued to signal that the commodity’s multi-month upward move is still extending – even the RSI reading is pointing to an overbought condition. In the absence of a price exhaustion signal, we retain our positive trading bias.

As the bulls have firm control over the uptrend, traders are advised to remain 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 below MYR2,445.

We revised the immediate support to MYR2,445, the low of 30 Oct, followed by MYR2,400. Moving up, the immediate resistance is now set at MYR2,568, the high of 1 Mar 2018, followed by MYR2,600.

Source: RHB Securities Research - 5 Nov 2019