Maintain long positions as the bulls are defending the immediate support. The FCPO tested the MYR2,650 support level with a low of MYR2,648 before ending at MYR2,662 – a decline of MYR19. As mentioned in our previous note, the commodity is likely trading in a minor consolidation phase in the range of MYR2,650 and MYR2,750. The latest positive price reaction near the lower bound of the said range is reinforcing this bias. Until the immediate support is invalidated, we are keeping our positive trading bias.

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 maintained at MYR2,650, the low of 18 Aug, followed by MYR2,600. Conversely, the immediate resistance is eyed at MYR2,700, followed by at MYR2,750.

Source: RHB Securities Research - 25 Aug 2020