Maintain long positions. The FCPO met our minimum expectations of retesting the MYR3,104 mark with an intraday high of MYR3,123, before sliding back to close MYR14 lower at MYR3,051. The negative intraday price reversal from the resistance zone that consists of MYR3,104 and MYR3,150 – the latter being the YTD high – is highlighting the possibility of a price rejection. However, confirmation of this, in the form of a negative price follow-through in the coming sessions is needed. For now, we are looking at the downside breach of MYR3,015 as the required price signal. Until this happens, we are keeping our positive trading bias.

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 below MYR3,015.

The immediate support is is maintained at MYR3,015 – near the 27 Oct’s 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 – the YTD high.

Source: RHB Securities Research - 4 Nov 2020