Maintain long positions as the upward move is being extended. The FCPO formed an “Upside Gap” to end yesterday’s session MYR63 stronger, at MRY2,685 – marginally above the previous immediate resistance of MYR2,683. Trading ranged between MYR2,656 and MYR2,699. The positive performance means the commodity’s upward move is extending. This came after a relatively narrow sideways consolidation phase in the past sessions, as its RSI reached an overbought reading condition. As there is no sign of a price exhaustion, we maintain our positive trading bias.

As the bulls are charging ahead, 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.

Immediate support is revised to MYR2,558, the low of 14 Nov. This is followed by MYR2,445, the low of 30 Oct. Meanwhile, the immediate resistance now pegged at MYR2,758, the high of 16 Nov 2017, followed by MYR2,800.

Source: RHB Securities Research - 21 Nov 2019