Maintain long positions while tightening up risk management. The FCPO continued to exhibit a strong momentum, adding MYR47 to close at MYR2,661. The closing level placed it above the previous immediate resistance of MYR2,626 – indicating the bulls are still in firm control. This positive observation is also supported by the fact that it is now relatively comfortable above the 200-day SMA line. While the RSI is flashing overbought, price signals remain positive. Maintain 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 now be placed below MYR2,600.

We revise the immediate support to MYR2,640 – price point of the latest session. This is followed by MYR2,600. Meanwhile, the immediate resistance is revised to MYR2,666, which is derived from 17 Feb’s high. This is followed by MYR2,700.

Source: RHB Securities Research - 21 Jul 2020