Maintain long positions while keeping the trailing-stop tight. The FCPO ended the latest session MYR30 higher at MYR2,383. At one point the commodity tested the 200-day SMA line with an intraday high of MYR2,429. Despite the commodity not being able to settle above the said SMA line, we are not seeing any signs of a possible price rejection or reversal signal from the said level. The commodity has, since early March, been attempting to cross above this line. Hence, an upside breach of this could would further reinforce our positive trading bias.

As we are of the view that the rebound has yet reached its peak, we recommend traders stay in long positions. To manage risks, a stop-loss can be placed at the breakeven mark.

We revise the immediate support to MYR2,350. This is to be followed by the MYR2,300 round figure. Meanwhile, the immediate resistance is maintained at the MYR2,400 round figure, also near the 200-day SMA line. This is followed by MYR2,450.

Source: RHB Securities Research - 26 Mar 2020