Maintain long positions. The FCPO continued its winning streak by moving higher for the seventh consecutive session, rising MYR86 to close at MYR4,060 and recording a new 2021 high. On Thursday morning, the commodity initially started the session weaker, gapping MYR13 lower to open at MYR3,961. After briefly touching the session’s low of MYR3,935, the commodity was encouraged by strong buying interest and pierced though the physcological level of MYR4,000 to reach the session’s high of MYR4,064, before settling in at MYR4,060. Since the RSI is moving into an overbought territory or above the 70% threshold, we expect selling pressure to emerge near the resistance level of MYR4,100 and MYR4,150. There may be a pullback in the coming sessions to retest the MYR3,950 and MYR3,900 levels. As long as the FCPO sustains above the stop-loss level, we are keeping our positive trading bias.

We recommend traders stick to long positions, which were initiated at MYR3,878, or the closing level of 8 Mar. To manage risks, the stop loss is revised to MYR3,915.

The nearest support level is revised to MYR3,950 and followed by the round figure of MYR3,900. Towards the upside, the immediate resistance is now pegged at MYR4,100, followed by MYR4,150.

Source: RHB Securities Research - 12 Mar 2021