Upward move persists; maintain long positions. The FCPO continued to show strong momentum in the latest session; at the close, it crossed above the previous immediate resistance of MYR2,800. The commodity registered a low and high of MYR2,770 and MYR2,818, before closing MYR42 stronger at MYR2,815. The commodity’s upward move is still strong, despite its RSI reaching the overbought level. For now, provided the revised immediate support of MYR2,685 is not breached, the risk for the commodity to experience a deeper correction would still be contained. Maintain our positive trading bias.

As the trend is still showing strength, 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 MYR2,685.

We revised the immediate support to MYR2,685, the low of 2 Dec, followed by MYR2,558, the low of 14 Nov. On the other hand, the immediate resistance is now pegged at MYR2,855, ie the high of 30 Oct 2017. This is followed by MYR2,900.

Source: RHB Securities Research - 6 Dec 2019