Maintain long positions. The FCPO saw another volatile session, moving MYR29.00 higher when compared to the previous session. The commodity started the session at MYR3,218 before soon retracing lower to the MYR3,193 low. It struggled between MYR3,218 and MYR3,193 most of the time, before taking off during the final trading hour – rising to the MYR3,259 day high. Though the FCPO experienced some profit taking during the early session, the selling pressure was fully absorbed and the commodity closed at MYR3,256 – a level near to the day’s high. The price action displayed during the last two sessions had successfully weakened the Dark Cloud Cover. With the RSI still trending upwards, there is a possibility that we will witness the FCPO taking out the immediate resistance level soon. With the recent higher highs or lows price observations, we maintain our positive trading bias.

We recommend traders stay in long positions. We initiated these at MYR3,208, or the closing level of 5 Nov. To limit downside risks, we revise the stop-loss to MYR3,175.

The immediate support is moved higher to MYR3,154 and followed by MYR3,059. On the upside, the immediate resistance is revised to the 6 Nov high – MYR3,262 – and followed by the MYR3,300 round figure.

Source: RHB Securities Research - 16 Nov 2020