Maintain long positions while tightening up risk management. The FCPO kick-started the latest session with an “Upside Gap”, reaching a high of MYR2,910, before closing MYR81 higher at MYR2,892 – still below the MYR2,900 resistance point. The encouraging session came after the commodity tested the MYR2,800 support level three times in the prior week, signalling the multi-month uptrend is still in place. We now believe, provided the MYR2,840 support mark is not breached, the risk of the commodity experiencing a trend reversal will stay low. Hence, we are keeping 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 MYR2,840.

The immediate support is revised to MYR2,840, which is the high of 10 Sep. This is followed by MYR2,800. Meanwhile, the immediate resistance is now set at MYR2,900, this is followed by MYR2,910 – the latest high.

Source: RHB Securities Research - 15 Sept 2020