Maintain long positions. The FCPO again tested the MYR2,800 support mark – its third in a week. It hit a low of MYR2,788 before rebounding to close at MYR2,811 – a marginal decline of MYR3. With closing price staying above the said support, this signals that the commodity’s overall upward move remains intact. A breach of the said support would, in our view, mark the end of the upward move that started from the low in May. For now, we stay with our positive trading bias.

We advise traders to remain in long positions, until a deeper correction phase is confirmed. 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 set at MYR2,800, followed by MYR2,765 – the low of 2 Sep. Moving up, the immediate resistance is eyed at MYR MYR2,850 – price point of 9 Sep. This is followed by MYR2,900.

Source: RHB Securities Research - 14 Sept 2020