Maintain long positions as the bulls are re-emerging from near the immediate support level. The FCPO staged a strong positive intraday price reversal to close MYR52.00 higher, at MYR2,708 – marginally above the MYR2,700 resistance point. This was after it came close to testing the MYR2,627 support level with a low of MYR2,630. The strong price reaction from the support implies that the commodity’s upward move is still valid, this was after the prior two sessions’ price actions were signalling selling pressure around MYR2,700. 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 set below MYR2,627. The immediate support is now at MYR2,675 – derived from the latest candle. This is followed by MYR2,627, or 21 Jul’s low. Meanwhile, the immediate resistance is now eyed at the MYR2,700 round figure, as it was not decisively breached in the latest session, followed by MYR2,750.

Source: RHB Securities Research - 29 Jul 2020