Maintain long positions. The FCPO generally saw a wide trading range during the whole session, scaling up from a low of MYR3,346 to a high of MYR3,447, before closing MYR105 stronger at MYR3,437 – breaking above the previous high of MYR3,420. The positive performance pushed the commodity away from its two-week sideways trading range, clearing our doubts over its readiness to extend its multi-month uptrend, which is now trading at the highest levels since mid-2012. With the latest positive price signal, together with the RSI reading which is still well below the overbought threshold, we keep to 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 set at the breakeven level.

The immediate support is revised to MYR3,375, followed by MYR3,325. On the upside, the immediate resistance revised to MYR3,450, followed by the round figure of MYR3,500.

Source: RHB Securities Research - 14 Dec 2020