Maintain long positions while moving up the trailing-stop. The FCPO marked a positive close, adding MYR48 to settle at MYR2,207 – marginally above the 50-day SMA line. The positive session also invalidated the prior session’s “Bearish Engulfing” formation, suggesting the bulls still have control over the rebound phase, which has stretched into the second week. The RSI reading is picking up and slightly above the 50 neutral reading. While the said rebound has reached our target of re-testing the 50-day SMA line, in the absence of a price rejection in the latest session, we are keeping our positive trading bias.

We advise traders to stay in long positions. We initiated these positions at MYR2,032, the closing level of 13 May. To manage risks, a stop-loss can now be placed below MYR2,140.

The immediate support is revised to MYR2,165, price point of the latest session. This is followed by MYR2,140, the low of 20 May. Moving up, the immediate resistance now eyed at MYR2,220, this is followed by MYR2,273 – the high of 20 Apr.

Source: RHB Securities Research - 27 May 2020