Maintain long positions. The FCPO once more continued its sideways direction to close a marginal MYR2.00 higher at MYR4,044 yesterday. Initially, the commodity opened lower at MYR4,029. It then touched the day low of MYR4,018 before moving higher to test the MYR4,085 day high. The FCPO then closed at MYR4,029. Despite a long upper shadow pattern forming, the bulls are still in control in terms of maintaining the recent positive momentum. While the RSI is tracking the trendline, which is pointing upwards, it may attempt to retest the recent high of MYR4,095 in the coming sessions. Meanwhile, if the bears are eager to take profits, the FCPO may retrace to test the MYR4,000 psychological support level. As long as it trades above the stop-loss level, we stick to a positive trading bias.

We suggest that traders stay in long positions. We initiated these at the close of 3 May, or MYR4,061. To manage risks, a stop-loss mark is placed below MYR3,843.

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

Source: RHB Securities Research - 6 May 2021