Maintain long positions until there is a clear price rejection from the 200-day SMA line. The FCPO closed on a weak note yesterday, sliding down by MYR39.00 to close at MYR2,402. The low and high were recorded at MYR2,360 and MYR2,446. The negative session is a discouraging follow-up from the prior session, as it again placed the commodity below the 200-day SMA line. Recalled that the said SMA line was crossed in the prior session after multiple attempts made in March. As highlighted in our previous report, a price rejection from the said SMA line would change the technical outlook. Until we see a clear price signal of this, we are keeping our positive trading bias.

Traders are recommended to remain in long positions. We initiated these at MYR2,353, the closing level of 24 Mar. To manage risks, a stop-loss can be placed at the breakeven mark.

The immediate support is maintained at MYR2,400, followed by MYR2,350. Meanwhile, the immediate resistance is set at MYR2,450 threshold. This is followed by MYR2,500.

Source: RHB Securities Research - 1 Apr 2020