Initiate long positions, as the bulls have likely regained control. The FCPO formed a white candle that, at the close, crossed above the 200-day SMA line and the MYR2,480.00 mark – suggesting that the multi-week retracement has likely reached an interim low and that it is now ready to stage a bigger rebound phase. The low and high were at MYR2,349.00 and MYR2,502.00. The commodity closed MYR118.00, stronger at MYR2,495.00. Premised on this, we switch our trading bias to positive.

Our previous long positions – initiated at MYR2,695.00, the closing level of 11 Feb – were closed out at MYR2,480.00 in the latest session. As the bulls have staged a comeback, we initiate long positions at the latest close. To manage risks, a stop-loss can be placed below MYR2,400.00.

The immediate support is now set at MYR2,450.00, followed by MYR2,400.00 – both are price points from the latest session. Moving up, immediate resistance is pegged at MYR2,533 – the high of 25 Feb. This followed by MYR2,600 round figure.

Source: RHB Securities Research - 5 Mar 2020