Maintain long positions as the bulls are showing good control. The FCPO had a good follow-up from the prior session’s positive intraday price reversal, adding MYR26.00 to settle at MYR2,737 on Wednesday – extending beyond MYR2,700. The last two positive sessions have improved the technical picture, and indicates that the possibility is now stronger for the commodity to extend its multi-week uptrend that started from the low in May. This positive bias should remain in place, if the MYR2,650 support level is not breached.

We recommend traders to stay in long positions. We initiated these at MYR2,711, 18 Aug’s closing level. To manage risks, a stop-loss can be placed below MYR2,650.

We are keeping the immediate support at MYR2,700, while the second support is revised to MYR2,650 – the low of 18 Aug. Conversely, the immediate resistance is set at MYR2,750, followed by MYR2,800

Source: RHB Securities Research - 21 Aug 2020