Maintain long positions while moving up the trailing-stop. Yesterday, the FCPO continued to trade on the strong side. It formed an “Upside Gap” to test the MYR3,000 resistance with a high of MYR3,002, before settling at MYR2,975. Despite not being able to close above the MYR3,000 resistance, intraday price actions did not indicate a price rejection from the said level. While the RSI reading is approaching the overbought threshold, in the absence of price exhaustion signals, the multi-month uptrend remains firmly in place. As such, we make no change to our positive trading bias.

We advise traders to remain 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 MYR2,890.

The immediate support is revised to MYR2,950, followed by MYR2,890 – the price point of 14 Sep. Moving up, the immediate resistance is set at MYR3,000, followed by MYR3,050.

Source: RHB Securities Research - 18 Sept 2020