Maintain long positions. The FCPO fell MYR60.00 to settle at MYR3,863 yesterday. After starting the session at MYR3,945, the commodity inched up to the day’s high of MYR3,954. It then moved lower to the day’s low of MYR3,826, before mildly rebounding to close at MYR3,863. This price action indicates a healthy pullback for a second day of consolidation after the FCPO staged a strong rally in previous sessons. As long as it remains above MYR3,850 pts, the commodity may consolidate and form a “higher low” pattern. Otherwise, breaching MYR3,850 may see a deeper correction. We maintain a positive trading bias until the stop-loss is triggered.

We recommend that traders remain in long positions, initiated at MYR3,930 or the closing level of 23 Mar. To manage risks, the stop-loss can be placed at MYR3,835.

The downside support remains unchanged at MYR3,850, followed by MYR3,800. Towards the upside, the immediate resistance is at the MYR4,000 psychological level, followed by MYR4,040.

Source: RHB Securities Research - 26 Mar 2021