Bulls still present; maintain long positions. The FCPO traded between MYR2,420 and MYR2,468 yesterday, before closing MYR21.00 stronger at MYR2,466 – matching the 200-day SMA line. Judging from the commodity’s price actions over the past three sessions, we are not seeing any potential price exhaustion signal around the SMA line. This implies that the rebound which started in early May is still firmly in place. This bias should remain in place, provided the MYR2,400 support mark is not breached. Premised on this, we are maintaining our positive trading bias.

We recommend that traders stay in long positions. We initiated these at MYR2,472, the closing level of 19 Jun. To manage risks, a stop-loss can be placed below MYR2,400.

We are maintaining the immediate support at MYR2,435, the price point of 19 Jun. This is followed by MYR2,400. Moving up, the immediate resistance is pegged at MYR2,475, followed by MYR2,550.

Source: RHB Securities Research - 30 Jun 2020