Maintain long positions. The FCPO failed to sustain its earlier session’s firm footing, which saw the price reaching a high of MYR3,470, before reversing to close MYR45.00 weaker at MYR3,392. The negative closing placed the commodity back inside the previous breakout level of MYR3,420, thus flashing out a possible initial price reversal signal. However, to confirm this, we need to see further negative price actions in the sessions ahead. We are looking at the downside breach of the latest low of MYR3,382 as the required price reversal confirmation signal. For now, we are keeping our positive trading bias.

Traders should remain in long positions. We initiated these at MYR3,338, the closing level of 27 Nov. To manage risks, a stop-loss can now be placed below MYR3,382.

The immediate support is now pegged to the latest low of MYR3,382, followed by MYR3,325. Meanwhile, the immediate resistance has been revised to MYR3,435, followed by MYR3,470 – both are price points of the latest session.

Source: RHB Securities Research - 8 Dec 2020