Rebound still look good; maintain long positions. The FCPO ended the latest session MYR21.00 higher at MYR2,378. This was after it reached a low and high of MYR2,343 and MYR2,399 – the latter was slightly below the MYR2,400 immediate resistance. Based on the commodity’s price actions over the past three sessions, we believe the rebound that started from the low of MYR2,186 on 19 Mar remains firmly in place. At this juncture, as long as there is no clear price rejection signal from the 200-day SMA line, we will maintain our positive trading bias.

As bulls are still showing control over the rebound, we recommend traders stay in long positions. To manage risks, a stop-loss can be placed at the breakeven mark.

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

Source: RHB Securities Research - 30 Mar 2020