Maintain long positions. The FCPO recorded a fifth consecutive positive session yesterday, adding MYR40 to close at MYR3,915. During the early morning, it gapped up MYR27.00 to start the session at MYR3,905. Mild profit taking activities took place near the day’s high of MYR3,941 while buying interest emerged near the day’s low of MYR3,827. During the last 30 minutes, the bulls overpowered the bears to see the commodity rebound higher to close at MYR3,915. With the candlestick pattern having a long lower shadow, buying pressure is greater than selling pressure. As long as the index sustains above MYR3,800, we think the bullish momentum will gradually lift the commodity to test higher resistance at MYR3,941, and the physcological level of MYR4,000. Since the bullish momentum stays intact, we maintain positive trading bias.

We recommend traders to maintain long positions, which initiated at MYR3,878 or the closing level of 8 March. To manage risks, a stop loss can be placed below MYR3,800.

The nearest support level is maintained at MYR3,800, followed by MYR3,750. Towards the upside, the immediate resistance is now pegged at 9 March’s high of MYR3,941, followed by the physcological level of MYR4,000.

Source: RHB Securities Research - 10 Mar 2021