Tightening up risk management; maintain long positions. The FCPO formed a third “Upside Gap” in a week in the latest session, adding MYR105 to close at MYR3,080 – crossing above the previous resistance points of MYR3,000 and MYR3,050. The past four sessions saw the commodity register cumulative gains of over MYR300, driving prices near to its YTD high of MYR3,150. While this has pushed the RSI into an overbought threshold, there is no price signal that points towards a potential correction to the sharp upward move. Hence, we are keeping 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 MYR3,030.

The immediate support is revised to MYR3,030 – price point of the latest session. This is followed by MYR3,000. Moving up, the immediate resistance is now eyed at MYR3,100, followed by MYR3,150 – the YTD high.

Source: RHB Securities Research - 21 Sept 2020