Minor consolidation; maintain long positions. The FCPO closed MYR45 higher last Friday, at MYR2,573. The session’s low and high were MYR2,512 and MYR2,585. Despite the positive session, there is a high possibility that the commodity is still in a minor consolidation phase, which has been developing over the past four sessions. This is to correct its recent weeks’ upward move, which is still flashing an overbought RSI reading. Until signs of a deeper correction emerge, we keep to our positive trading bias.

Traders should 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.

Immediate support should emerge at MYR2,445, the low of 30 Oct, followed by MYR2,400. Towards the upside, the immediate resistance is pegged at MYR2,568, the high of 1 Mar 2018, followed by MYR2,600.

Source: RHB Securities Research - 11 Nov 2019