Maintain long positions while placing trailing-stop to breakeven level. After experiencing difficulties to move upwards over the prior three sessions, the FCPO ended the latest session MYR124 higher to close at MYR3,066. The positive performance has placed the commodity a step closer to meet our expectations for it to, at the minimum, retest 21 Sep’s high of MYR3,104 – we believe the multi-month uptrend that stretched from the low in May is likely still incomplete. This positive bias is further supported by the RSI that is trending higher. Maintain our positive trading bias.

Without evidence of a price exhaustion. we recommend that traders remain in long positions. We initiated these at MYR2,888, the closing level of 21 Oct. To manage risks, a stop-loss can now be placed at the breakeven mark.

The immediate support is revised to MYR2,970, followed by MYR2,900. On the upside, the immediate resistance is now set at MYR3,104, which is the high of 21 Sep’s “Bearish Engulfing” formation. This is followed MYR3,150

Source: RHB Securities Research - 27 Oct 2020