Maintain long positions. The FCPO tested the immediate support of MYR3,300 in the latest session, after trading ranged between MYR3,296 and MYR3,336. It closed MYR31.00 weaker, at MYR3,316. The negative session invalidated the previous session’s breakout from the MYR3,340 resistance point – which points to the lack of a followthrough from the bulls. However, the multi-month uptrend trend remains valid at this juncture. The risk of a deeper retracement phase developing is still contained, as long as the MYR3,300 support level is not breached at the closing in the sessions ahead. As such, we make no change to our positive trading bias.

As we have yet to see negative price signals of a deeper retracement developing, traders should stick to 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.

The immediate support is maintained at MYR3,300, followed by MYR3,255 – the price point of 30 Nov. Moving up, the immediate resistance is now at MYR3,366, the high of 1 Dec. This is followed by MYR3,420, the high of 19 Nov.

Source: RHB Securities Research - 8 Dec 2020