Maintain long positions. The FCPO underwent positive intraday price reversal to settle MYR24.00 higher, at MYR2,292. At one point, it attempted for a second straight session to cross above the MYR2,300 mark. The latest two sessions’ price actions around MYR2,300 can be seen as a healthy minor consolidation, after a relatively sharp advancement on 27 May where the commodity crossed above the 50-day SMA line for the first time in months. Premised on this, we are keeping our positive trading bias.

In the absence of price reversal signal from the MYR2,300 mark, 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.

We are keeping the immediate support at MYR2,240, the price point of 27 May, followed by MYR2,200. Conversely, the immediate resistance is revised to MYR2,300 mark, followed by MYR2,350.

Source: RHB Securities Research - 1 Jun 2020