Maintain long positions as the upward move is extending. The FCPO registered a low and high of MYR2,801 and MYR2,883, before ending MYR43 stronger at MYR2,858 – marginally above the previous immediate resistance of MYR2,855. Overall, we continue to see the bulls are still having good control over the commodity’s multi-week upward move. While we note that the RSI reading is flashing out an overbought reading, in the absence of a price reversal signal, to signal a possible interim top, we are keeping our positive trading bias.

In the absence of weakness to the said upward trend to suggest a possible correction phase, 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.

Immediate support is set at MYR2,685, the low of 2 Dec, followed by MYR2,558, the low of 14 Nov. Towards the upside, the immediate resistance is now expected at MYR2,900. This is followed by MYR2,986, which was the high of 16 February 2017.

Source: RHB Securities Research - 9 Dec 2019