Maintain long positions. The FCPO formed a white candle to settle the latest session MYR69 stronger at MYR3,110. The low and high were posted at MYR3,038 and MYR3,124. The positive session took place after the commodity came near to test the immediate support of MYR3,011 recently. This positive follow-up from the said support suggests that the commodity’s upward move is still firmly intact, and the risk for it to encounter a deeper correction phase is still contained. This is despite the RSI recently flashing out an overbought reading. Hence, we keep to our positive trading bias. As the upward move is not showing signs of a price exhaustion, traders are recommended to 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 expected at MYR3,011, the latest session’s low. This is followed by MYR2,806, the low of 18 Dec. Moving up, 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 - 10 Jan 2020