Maintain long positions. The FCPO rebounded from an earlier session’s low of MYR3,018 to close at MYR3,065, narrowing its losses by a mere MYR1. Based on the intraday price actions, the slight decline does not suggest a price exhaustion to the commodity’s overall positive price trajectory. We are still expecting it to, at the minimun, move towards the MYR3,104 resistance point. This positive bias is further supported by the improving RSI reading at below the overbought threshold. The rising 50-day SMA line, which is also sitting comfortably above the 200-day SMA line, is supportive of our positive trading thesis.

As the bulls have yet to show signs of 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 MYR3,015 – near the latest low, followed by MYR2,970. Moving up, the immediate resistance is maintained at MYR3,104, the high of 21 Sep’s “Bearish Engulfing” formation. This is followed MYR3,150

Source: RHB Securities Research - 2 Nov 2020