No negative follow-through; maintain long positions. The FCPO added MYR94 to close at MYR2,614 – crossing above the previous resistance levels. The strong session means there was no negative follow-through in the prior session’s weak performance where the commodity experienced a sharp negative intraday price reversal. This indicates that the bulls still have firm control over the commodity’s upward move. We keep our positive trading bias.

We advise traders to stay in long positions. We initiated these at MYR2,502 – the closing level of 14 Jul. To manage risks, a stop-loss can be placed at the breakeven mark.

We revise the immediate support to the MYR2,600 followed by MYR2,560. Moving up, the immediate resistance is revised to MYR2,626 – the high of 21 Feb. This is followed by MYR2,666, which is derived from 17 Feb’s high.

Source: RHB Securities Research - 20 Jul 2020