Initiate long positions on possible rebound play. The FCPO performed positively in the latest session. At the closing, it added MYR64 to settle at MYR2,353. Intraday, the intraday tone was positive as it generally trended higher for most parts of the session, with the low and high recorded at MYR2,297 and MYR2,383. The positive closing crossed above the previous immediate resistance of MYR2,350, which in our view, signals a good chance for a counter-trend rebound to develop. Hence, we switch our trading bias to positive.

Our previous short positions initiated at MYR2,332, the close of 9 Mar were closed at MYR2,350. On the expectation that a rebound could be developing, we initiate long positions at the latest close. To manage risks, a stop-loss can be placed below MYR2,250.

The immediate support is revised to MYR2,300 round figure, this is followed by MYR2,250 – price point of 23 Mar. Towards the upside, the immediate resistance is set at MYR2,400 round figure, also near the 200-day SMA line. This is followed by MYR2,450.

Source: RHB Securities Research - 25 Mar 2020