Rebound stays intact; maintain long positions. The FCPO ended the latest session softer by MYR13.00, at MYR2,268, after hitting a high of MYR2,300 earlier. The weak session can be seen as a possible sign of profit-taking activities, after the prior session’s strong advancement which saw the commodity crossing above the 50-day SMA line. In the absence of an adverse price signal, the commodity’s rebound from the low of MYR1,939 on 6 May is still firmly in place. The RSI is picking up, but remains at a healthy level. As such, we make no change to our positive trading bias.

With the rebound still robust, we advise traders to stay in long positions. We initiated these at MYR2,032, the closing level of 13 May. To manage risks, a stop-loss can now be placed below MYR2,200.

The immediate support is maintained MYR2,240, the price point of 27 May, followed by MYR2,200. Meanwhile, the immediate resistance is set at MYR2,350, followed by MYR2,409 – the high of 9 Apr’s “Bearish Engulfing”.

Source: RHB Securities Research - 29 May 2020