Maintain long positions as upward move stays intact. The FCPO ended the latest session on a positive note, adding MYR16 to close at MYR2,747. This came after it reached a low and high of MYR2,691 and MYR2,763. The positive session means the commodity’s multi-week upward move is still firmly in place. Additionally, its RSI reading is still below the overbought reading. For now, provided the immediate support of MYR2,634 has not breached towards the downside, the risk of the commodity experiencing a deeper correction would still be contained. Hence, we keep to our positive trading bias.

As the commodity is still showing potential to scale higher, 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 immediate support expected at MYR2,634, the low of 26 No, followed by MYR2,558, the low of 14 Nov. Moving up, the immediate resistance is set at MYR2,800, followed by MYR2,855, ie the high of 30 Oct 2017.

Source: RHB Securities Research - 4 Dec 2019