Maintain long positions. The FCPO charted its sixth consecutive of positive closing, ending the latest trade MYR83 stronger at MYR2,994, with the high was posted at MYR3,026. While the rebound off the low of MYR2,691 recorded on 2 and 5 Oct, has been very sharp – at over MYR330 in a short span of one week – we have yet to see any weakness to the said rebound phase. However, we are expecting some form of consolidation phase to commence in the coming sessions. Until signs of this appear, we are keeping our positive trading bias.

We recommend that traders stick to long positions. We initiated these at MYR2,818, the closing level of 6 Oct. To manage risks, a stop-loss can be placed below MYR2,900.

The immediate support is revised to MYR2,950, followed by the round figure of MYR2,900. Conversely, the immediate resistance is now eyed at MYR3,050, followed by MYR3,104 – the high of 21 Sep.

Source: RHB Securities Research - 13 Oct 2020