Upward move still intact; maintain long positions. The FCPO closed MYR18 lower, at MYR2,667 yesterday, after it briefly tested the MYR2,700 immediate resistance. It charted an intraday high of MYR2,709. While it was not able to close above MYR2,700, it is too early to conclude that the commodity is experiencing a price exhaustion. Further negative price actions are needed for this to be confirmed. As such, until this happens, we make no change to our positive trading bias.

As the bulls are still having control over the price trend, 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 maintained at MYR2,558, the low of 14 Nov. This is followed by MYR2,445, the low of 30 Oct. Towards the upside, the immediate resistance is expected at MYR2,758, the high of 16 Nov 2017, followed by MYR2,800.

Source: RHB Securities Research - 22 Nov 2019