Maintain long. The FCPO experienced a volatile session, closing higher at MYR3,227. The commodity started on a positive note, rising MYR36 to open at MYR3,217. It then saw strong selling interest and fell to a low of MYR3,154. During the final trading hour, momentum shifted back and it recouped all the losses, closing at MYR3,227, or MYR46 higher. With the latest price action, this has weakened the reversal pattern of the Dark Cloud Cover. We are more likely to see the commodity test the resistance level in the coming sessions. As long the support level is not breached, we keep to our positive trading bias.

We recommend traders to stay in long positions. We initiated these at MYR3,208, the closing level of 5 Nov. To limit downside risks, the stop-loss level can be placed below MYR3,115.

The immediate support is unchanged at MYR3,115, followed by MYR3,059. On the upside, the immediate resistance is pegged at MYR3,250, followed by MYR3,300.

Source: RHB Securities Research - 16 Nov 2020