Maintain long positions. The FCPO briefly tested the MYR2,800 resistance level in the latest session with a high of MYR2,825, before giving back a good part of the intraday gains to end at MYR2,784, a MYR46 gain. Consequently, a “Doji” formation appeared – an indication of indecisiveness by the bulls. At this juncture, we see the commodity’s inability to sustain above the MYR2,800 resistance as merely a result of profit taking activities following the recent sessions’ sharp gains, from near the MYR2,600 support level. Hence, we are keeping our positive trading bias.

Until signs of trend exhaustion appear, we advise traders to stay in long positions. We initiated these at MYR2,738, the closing level of 28 Aug. To manage risks, a stop-loss can be placed at the breakeven point.

The immediate support is revised to MYR2,750 followed by MYR2,700. Towards the upside, the immediate resistance is maitained at MYR2,800, followed by MYR2,850.

Source: RHB Securities Research - 2 Sept 2020