Maintain long positions. The FCPO rallied higher yesterday, rising MYR38.00 to settle at MYR3,588. The commodity had a positive opening, gapping MYR23.00 higher to open at MYR3,573. The bears tried to drag the FCPO to the day low of MYR3,554, but the bulls managed to absorb the selling pressure and pushed the price back to the MYR3,606 day high. Mild profit-taking during the late session saw minor retracements, and it closed at MYR3,588. The FCPO has resumed the uptrend mode after three sessions of consolidation. Just as we expected, the uptrending of the RSI is suggesting that the bulish momentum remains intact. With the positive sentiment, the commodity will test the resistance levels pegged at MYR3,600 and MYR3,650 during the coming sessions. On the back of this bullish momentum, we maintain our positive trading bias.

We recommend traders maintain long positions. Our long positions were initiated at MYR3,535, or the closing level of 23 Dec. To manage risks, we raise the stop-loss level to the MYR3,470 mark.

The immediate support level is marked at the round figure of MYR3,500 and followed by MYR3,450. Meanwhile, the immediate resistance is now pegged at the round figure of MYR3,600 and followed by MYR3,650.

Source: RHB Securities Research - 31 Dec 2020