Maintain long positions as the bulls are still controlling the trend. The FCPO experienced a positive intraday reversal to settle MYR20 stronger at MYR2,606. This came after it reached a low and high of MYR2,558 and MYR2,639. The positive intraday price reversal indicates that the bulls are still present. Despite the RSI reading remaining in the overbought territory, price actions in the recent sessions are still showing the multi-week upward move is firm. Until there are further negative price actions taking place in the coming sessions, we are keeping our positive trading bias.

As the commodity has not flashed out a price exhaustion signal, traders are recommended 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 MYR2,558.

The immediate support is expected at MYR2,503, the low of 6 Nov. This is followed by MYR2,445, the low of 30 Oct. Meanwhile, the immediate resistance is set at MYR2,683, the high of 20 Nov 2017, followed by MYR2,758, the high of 16 Nov 2017.

Source: RHB Securities Research - 15 Nov 2019