Maintain long positions. The FCPO failed to maintain most of it gains in the latest session. After testing the MYR2,700 resistance level with a high of MYR2,712, prices retraced to a low of MYR2,638 – before closing MYR15 higher at MYR2,656. While the commodity’s positive price trend is still in place, price actions over the past two sessions indicate a possible emergence of selling pressure as the commodity attempts to advance. However, to confirm a trend reversal, we still believe the prior session’s low of MYR2,627 needs to be breached. Until this happens, we are keeping 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 MYR2,627.

We keep the immediate support at MYR2,627, or 21 Jul’s low. This is followed by MYR2,600. Towards the upside, the immediate resistance is revised to MYR2,675 – price point of the latest session. This is followed by MYR2,700.

Source: RHB Securities Research - 23 Jul 2020