Maintain long positions as the signal for a deeper retracement is still absent. The FCPO settled the latest session MYR38 weaker at MYR2,571. The low and high were recorded at MYR2,558 and MYR2,594. At this juncture, the negative session has not produced any signal for a potential deeper retracement to develop. This bias will remain provided the trailing-stop of MYR2,558 is not breached at the closing. The negative session can be seen as a sign of the bulls taking a pause as the multi-week upward move has reached an overbought RSI reading. Maintain our positive trading bias.

On the observation the bulls are still in control, 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 set at MYR2,503, the low of 6 Nov. This is followed by MYR2,445, the low of 30 Oct. Moving up, 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 - 18 Nov 2019