Maintain long positions while moving up trailing-stop. The FCPO overcome its previous session’s profit-taking impact, gapping north and trending higher before closing MYR133.00 stronger, at MYR3,784. The day’s high was recorded at MYR3,791. While the price momentum and RSI readings are still in favour of the commodity’s upward move, tighter risk management is warranted as the commodity is moving closer towards retesting its multi-year high posted in early January. Towards the downside, we now regard MYR3,600 as the important near-term support which – if fails to hold – could send the commodity into developing a correction phase. For now, we are maintaining a positive trading bias.

We recommend that traders remain in long positions. We initiated these at MYR3,317, the closing level of 4 Feb. To manage risks, a stop-loss can now be placed below MYR3,600.

The support levels are revised to MYR3,750, followed by MYR3,700. Towards the upside, the immediate resistance is now pegged at MYR3,800, followed by MYR3,850.

Source: RHB Securities Research - 26 Feb 2021