Maintain long positions as the rebound is still extending. The FCPO formed a white candle, gaining MYR58 to close at MYR2,399 – crossing above the previous immediate resistance of MYR2,350. This is a positive follow-up after the commodity crossed above the MYR2,300 level in the prior session. While the rebound from the low MYR1,939 on 6 May has been relatively strong, the RSI reading is still below the overbought threshold. The positive bias is further supported by the 50-day SMA line, which is curving up. For now, provided the MYR2,300 is not breached, the rebound is considered to be intact. Maintain our positive trading bias.

With no price evidence to indicate an exhaustion, 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 be placed below MYR2,300.

We revise the immediate support to MYR2,350 – price point of the latest session, this is followed by MYR2,300. Meanwhile, the immediate resistance is revised to MYR2,409 – the high of 9 Apr’s “Bearish Engulfing”, followed by MYR2,455 - near the 200-day SMA line.

Source: RHB Securities Research - 9 Jun 2020