Maintain long positions. After undergoing a sharp increase last Friday, the FCPO took a pause and closed sideways at MYR3,710 yesterday, indicating a dip of MYR6.00. Yesterday, it opened at MYR3,726 (the day’s high), then moved moderately lower towards MYR3,666 before mildly rebounding to close at MYR3,710. This indicates that the strong momentum – evidenced by last Friday’s long white candle – has not yet faded. As such, the commodity could see the uptrend continue in the sessions ahead, and push past the 50-day SMA line. We make no changes to our positive trading bias.

Traders should remain in long positions, which were initiated at MYR3,590 or the close of the Jul 2021 contract on 15 Apr. To manage risks, the stop-loss is placed below MYR3,550.

The immediate support level stays at MYR3,650 – 16 Apr’s low – followed by the psychological level of MYR3,600. Towards the upside, the immediate resistance is maintained at 15 Apr’s open of MYR3,780 level, followed by 7 Apr’s high of MYR3,870.

Source: RHB Securities Research - 20 Apr 2021