Maintain long positions until the correction phase is confirmed. The FCPO traded widely yesterday, briefly testing the previous immediate support of MYR2,650. The session’s low and high were posted at MYR2,634 and MYR2,705, before it closed MYR57 lower at MYR2,676. We regard the commodity’s recent two sessions’ price actions as just an indication that a minor consolidation is taking place. This was after it experienced a relatively sharp upward move in recent weeks. This bias will remain valid as long as the latest session’s low is not breached at the closing. As such, our trading bias remains positive.

Until further negative price actions emerge, traders are advised to stay in long positions. These were initiated at MYR2,175, the closing level of 9 Sep. To manage risks, a stop-loss can be placed below MYR2,634, the latest session’s low.

Immediate support is revised to MYR2,634, the low of the latest session, followed by MYR2,558, the low of 14 Nov. On the other hand, the immediate resistance is set at MYR2,800, followed by MYR2,855, ie the high of 30 Oct 2017.

Source: RHB Securities Research - 27 Nov 2019