Maintain long positions. The FCPO move higher for a sixth consecutive session, rising MYR59.00 to close at MYR3,974. During the early morning, it gapped down MYR53.00 to start the session weaker at MYR3,862 before falling to the session low of MYR3,837. Buying interest emerged near this low, which saw the commodity reversing higher towards the session high at MYR3,986 and settling in at MYR3,974 – recording a new 2021 high. Buying pressure has overwhelmed the selling pressure in this latest session, and it is likely that we will see follow-through momentum to test the upside resistances at MYR4,000 and MYR4,050. If there are corrections in the coming sessions, we think the region between the MYR3,850 and MYR3,800 levels will offer strong support. As long as the FCPO trades above the stop-loss level, we maintain the positive trading bias.

We recommend traders maintain long positions, which were initiated at MYR3,878, or the closing level of 8 Mar. To manage risks, the stop loss is revised to MYR3,837.

The nearest support level is revised to MYR3,850 and followed by the MYR3,800 round figure. Towards the upside, the immediate resistance is now pegged at the MYR4,000 psychological level, and followed by MYR4,050.

Source: RHB Securities Research - 11 Mar 2021