Maintain long positions. The FCPO ceased the latest session weaker by MYR59 to close at MYR2,754, the low and high were posted at MYR2,746 and MYR2,836. The closing level also placed the commodity below the previous immediate support of MYR2,810. While it has softened for the second consecutive session, we are seeing this as just a pause by the bulls after the commodity experienced a relatively sharp rebound from the 100-day SMA line. Premised on this, we are keeping our positive trading bias.

As we believe the commodity’s multi-week correction phase has completed with the testing of the 100-day SMA line, we maintain our long positions. We initiated these at MYR2,804, the closing level of 5 Feb. To manage risks, a stoploss can be placed below MYR2,704.

The immediate support is revised to MYR2,752, derived from the 5 Feb candle. This is followed by the MYR2,700 round figure. Moving up, the immediate resistance is now pegged at the MYR2,800 round figure, followed by MYR2,859, the low of 24 Jan.

Source: RHB Securities Research - 11 Feb 2020