Maintain long positions until signs of a deeper correction emerge. The FCPO formed a black candle to close MYR26 lower, at MYR2,528. Trading took place between MYR2,515 and MYR2,575. Price actions over the recent three sessions indicate that a possible minor pause is developing around the MYR2,500 level. This came after the commodity’s multi-week uptrend reached an overbought condition. Until there are signs that a deeper correction is developing, we are sticking to our positive trading bias.

Without a deeper correction, 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 are still expecting the immediate support at MYR2,445, the low of 30 Oct, followed by MYR2,400. Moving up, the immediate resistance is pegged at MYR2,568, the high of 1 Mar 2018, followed by MYR2,600.

Source: RHB Securities Research - 8 Nov 2019