Maintain long positions. The FCPO extended its rebound in the latest session, closing MYR70.00 stronger at MYR2,778, to cross above the previous resistance levels of MYR2,700 and MYR2,750. The positive performance is a follow-up from the prior session’s strong intraday positive price reversal from near the MYR2,627 level. It also indicates that the bulls are still in firm control of the commodity’s price trend, despite the overbought RSI reading. We 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 set below MYR2,675.

The immediate support is revised to MYR2,720 – the latest session’s low, followed by MYR2,675 – the price point of 23 Jul. Meanwhile, the immediate resistance is now set at MYR2,800, followed by MYR2,850.

Source: RHB Securities Research - 27 Jul 2020