Maintain long positions as the bulls are still having good control. The FCPO settled the latest session MYR21 stronger at MYR2,744, this was after it reached a low and high of MYR2,708 and MYR2,782. The positive performance suggests the bulls are still having control over the commodity’s multi-week upward move. Recap that the FCPO experienced a minor correction recently on the back of an overbought RSI reading (it has retraced back to below the overbought threshold). In the absence of a price exhaustion signal, we are keeping our positive trading bias.

As the upward move is still extending, traders are advised to remain 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.

The immediate support is pegged at MYR2,634, the low of the latest session. Breaking this may see the market test 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 - 2 Dec 2019