Maintain long positions as the immediate support is still holding. The FCPO managed to stage a positive intraday price reversal, after coming close to testing the immediate support of MYR3,011 – the session’s low was at MYR3,013. At the closing, the commodity settled flat at MYR3,042. The positive price reaction from an area near the said immediate support suggests that the bulls are still in control over the price trend. As mentioned in our recent reports, as long as the commodity is still able to hold above the said support mark, the risk of it undergoing deeper correction should still be contained. Hence, we are keeping our positive trading bias.

Premised on this, traders should remain in long positions. These were initiated at MYR2,175, the closing level of 9 Oct. To manage risks, a stop-loss can now be placed below MYR3,011.

The immediate support is at MYR3,011, the low of 31 Dec 2019. This is followed by MYR2,806, the low of 18 Dec. Meanwhile, the immediate resistance level is set at MYR3,202, the high of 19 Dec 2016. This is followed by the psychological level of MYR3,300.

Source: RHB Securities Research - 8 Jan 2020