A firm breakout from sideways trading range; maintain long positions. The FCPO gained MYR80 to close at MYR2,891, the high was posted at MYR2,901. The positive performance signaled a firm breakout from the previous sideways trading range of MYR2,600-MYR2,800 – this is an encouraging technical observation. While the recent sessions’ upward move of about MYR300 is considered steep, the RSI reading is still below the overbought threshold. Hence, until we see price exhaustion signals appear, we are keeping our positive trading bias.

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 now be placed below MYR2,800.

The immediate support is revised to MYR2,845, slightly below the latest session’s low. This is followed by MYR2,800. Moving up, the immediate resistance is now eyed at MYR2,895 – the high of 6 Feb, followed by MYR2,950.

Source: RHB Securities Research - 4 Sept 2020