Maintain short positions. Strong buying interest emerged yesterday, and boosted the FCPO by MYR119.00 to a close of MYR3,843. The commodity started the session at MYR3,734, then dipped to the session’s low of MYR3,721 remaining sideways for most of the trading day. At the last hour, the tide changed and the FCPO surged to the session’s high of MYR3,855. The RSI indicator is curving upwards, indicating that the bullish momentum is picking up again. The commodity may see positive price actions following through, and testing the resistance levels of MYR3,855 and MYR3,897, before reclaiming the MYR3,900 area. However, as the commodity fell short of MYR3,850 or did not breach the stop-loss level, we make no change to our negative trading bias.

We recommend that traders stay in short positions, initiated at MYR3,897 or the closing level of 16 Mar. To manage risks, the stop-loss is set at MYR3,850.

The nearest support is marked at 19 Mar’s high of MYR3,766, followed by MYR3,700. Towards the upside, the immediate resistance level is pegged at 22 Mar’s high of MYR3,855, followed by 16 Mar’s close of MYR3,897.

Source: RHB Securities Research - 23 Mar 2021