Maintain long positions. The FCPO closed MYR56.00 lower at its last trading session, at MYR2,681 – after crossing below the previous immediate support of MYR2,700. Although the MYR2,700 support failed to hold, looking at the price pattern developed over recent sessions, the commodity is still trading within a healthy range of between MYR2,650 and MYR2,750. Based on this, and if the MYR2,650 support is not breached, the commodity’s overall positive trading bias should remain intact.

We recommend that traders stick to long positions. We initiated these at MYR2,711, the close of 18 Aug. To manage risks, a stop-loss can be placed below MYR2,650.

The immediate support is revised to MYR2,650, the low of 18 Aug, followed by MYR2,600. Towards the upside, the immediate resistance is revised to MYR2,700, followed by at MYR2,750.

Source: RHB Securities Research - 24 Aug 2020