Maintain long positions as there is no sign of a price exhaustion. The FCPO closed MYR15 lower at MYR2,733 yesterday. Trading ranged between MYR2,727 and MYR2,760. The soft session did not produce a price exhaustion signal, despite the still-elevated RSI reading. Instead, the latest session can be interpreted as the bulls taking a minor pause after the previous sessions’ sharp upward move. All in, the multi-month uptrend remains intact. As such, we are maintaining our positive trading bias.

As the bulls remain in the driver’s seat, traders should 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 MYR2,650, the latest session’s low.

Immediate support expected to emerge at MYR2,650, the low of 22 Nov. This is followed by MYR2,558, the low of 14 Nov. Towards the upside, the immediate resistance is set at MYR2,800, followed by MYR2,855, which was the high of 30 Oct 2017.

Source: RHB Securities Research - 26 Nov 2019