Maintain long positions while revising up the trailing-stop. The FCPO formed a white candle to cross above the previous resistance of MYR2,600. At the close, it settled MYR57 higher at MYR2,627. The low and high were at MYR2,562 and MYR2,657. Despite the still-overbought RSI reading, the latest positive price action suggests that the bulls are still in firm control of the multi-month uptrend. The 200-day SMA line, which is edging north, also supports the uptrend. All in, we make no change to our positive trading bias.

As the momentum is not toning down, 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 MYR2,503.

Immediate support is revised to MYR2,503, the low of 6 Nov. This is followed by MYR2,445, the low of 30 Oct. Towards the upside, the immediate resistance is now expected at MYR2,683, the high of 20 Nov 2017, followed by MYR2,758, the high of 16 Nov 2017.

Source: RHB Securities Research - 12 Nov 2019