Maintain long positions as the bulls are still showing resilience. The FCPO ceased the latest session higher by MYR26 at MYR2,773. This came after it posted a low and high of MYR2,740 and MYR2,777. The positive session continues to signal that the FCPO’s multi-week upward move is still firmly in place, without showing any price exhaustion. While we note that the RSI reading is returned to the overbought level, in the absence of adverse price actions, we are keeping our positive trading bias – a downside breach of the immediate support of MYR2,634 could invalidate this positive inclination.

On the observation that the bulls are still showing good control over the price trend, 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.

We are keeping the immediate support target at MYR2,634, the low of 26 Nov, 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 - 5 Dec 2019