Maintain long positions. The FCPO extended its retracement for the second consecutive session, shedding MYR31 to close at MYR2,804. It also tested the MYR2,800 immediate support. The latest two weak sessions set in after the commodity tested the MYR2,900 resistance mark on 3 Sep. Towards the downside, should the said immediate support be breached at the closing, this could potentially lead to a deeper and lengthier correction phase to correct the multimonth upward move that started from the low in May. For now, we are maintaining 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 maintained at MYR2,800 followed by MYR2,765, which is the low of 2 Sep. Moving up, the immediate resistance is set at MYR2,855, followed by MYR2,895 – the high of 6 Feb.

Source: RHB Securities Research - 8 Sept 2020