Maintain long positions. The FCPO recorded a positive price continuation from the prior session’s “Upside Gap”, adding MYR48.00 to close at MYR2,940 – crossing above the MYR2,900 resistance. The positive session came on the back of the RSI reading, which is picking up again, but has yet to reach the overbought threshold. All in, the multimonth upward move that started from the low in mid-May has yet to show signs of exhaustion. As such, we maintain a 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 now at MYR2,900, followed by MYR2,865 – which is near the low of 14 Sep. Towards the upside, the immediate resistance is now pegged at MYR2,950, followed by MYR3,000.

Source: RHB Securities Research - 17 Sept 2020