Maintain long positions. The FCPO generally moved higher intraday in the latest session, advancing from a low of MYR3,280 to a high of MYR3,366, before ending MYR42 higher at MYR3,347 – marginally above the previous immediate resistance of MYR3,340. The commodity’s price actions over the past 1.5 weeks are still showing the multimonth uptrend is still firmly in place, and not flashing out signals for a lengthy and/or a deeper correction phase to set in. Based on the latest three sessions’ price actions, we now believe provided the MYR3,300 support level continues to hold, the near-term bullish trading bias would stay intact.

We recommend that traders stay in long positions. We initiated these at MYR3,338 – the closing level of 27 Nov. To manage risks, a stop-loss can now be set below the MYR3,300 mark.

We revised the immediate support to the MYR3,000 round figure, followed by MYR3,255 – a price point of 30 Nov. Conversely, the immediate resistance is now set at MYR3,400, followed by MYR3,420 – the high of 19 Nov.

Source: RHB Securities Research - 7 Dec 2020