Initiate long positions as the bulls are showing signs of taking over control. The FCPO staged a positive intraday price reversal to end MYR32 higher at MYR2,711 – the low was posted at MYR2,650. The positive performance suggests that there was no follow-up from the prior three sessions’ black candles. With the upside breach of the MYR2,710 resistance, albeit marginally, this has invalidated our previous negative trading bias and signalling the bulls have regained control over the price trend. Switch our trading bias from negative to positive.

Our previous short positions – initiated at at MYR2,672, the close of 27 Jul – were closed out at MYR2,710 in the latest session. Concurrently, we initiate long positions at the latest closing level. To manage risks, a stop-loss can be placed below MYR2,670.

Support levels are eyed at MYR2,700, followed by MYR2,670 – the low of 14 Aug. Moving up, The immediate resistance is set at MYR2,750 followed by MYR2,800.

Source: RHB Securities Research - 19 Aug 2020