Maintain long positions. Despite closing MYR19.00 lower at MYR4,042 yesterday, the FCPO continued to enjoy a bullish momentum, after it managed to close above its opening point – forming a white body candlestick. The commodity opened at MYR4,007, then tapped the day’s low of MYR3,969 before moving north to touch the high of MYR4,093. This suggests that the bulls are still in charge, which should sustain its recent positive momentum. While the RSI is moving above the 50% level, the bullish momentum may propel the commodity in the coming sessions to retest the recent high of MYR4,095 – breaching it would negate the Bearish Engulfing pattern formed previously. Meanwhile, MYR4,000 will continue to be the psychological support level, sustaining the recent upward movement. As such, we stick to a positive trading bias.

We suggest that traders remain in long positions. We initiated these at the close of 3 May – MYR4,061. To manage risks, we set the initial stop-loss below MYR3,843.

The support levels are still at MYR4,000 and MYR3,843. Towards the upside, the resistance levels are maintained at MYR4,095 and the 15 Mar’s high of MYR4,192.

Source: RHB Securities Research - 5 May 2021