Maintain long positions. The FCPO continued to perform positively for a second consecutive session, adding MYR52.00 to close at MYR2,870 – the high was recorded at MYR2,892. The close placed the commodity further above the 50-day SMA line. Additionally, the RSI continues to trend higher and above the neutral reading – indicating an improving momentum. All in, the commodity’s rebound is still showing good signs of extending. Until signals of weaknesses appear, we are keeping our positive trading bias.

We recommend that traders stay in long positions. We initiated these at MYR2,818, the closing level of 6 Oct. To manage risk a stop-loss can now be set below MYR2,770.

The immediate support is revised to MYR2,770, followed by MYR2,700. On the upside, the immediate resistance is now set at MYR2,900, followed by MYR2,925.

Source: RHB Securities Research - 8 Oct 2020