Maintain long positions. The FCPO managed to form a bullish candlestick yesterday, despite fading MYR14 to settle at MYR3,506. Initially, it tracked its peers to open weaker at MYR3,450. After forming an intraday low at MYR3,421, the commodity pared the losses to touch the intraday high of MYR3,525 before settling at MYR3,506. The bullish candlestick indicates that the bulls are not ready to give up just yet as they struggled to defend the 200-day SMA line (MYR3,500). If the bullish momentum follows though, the commodity may test its nearest resistance of MYR3,550. Nevertheless, the RSI has yet to cross the 50% threshold – there is still downside risk of retracing towards the MYR3,350 support level. Since the stop-loss stays intact, our positive trading bias remains.

Traders are recommended to maintain their long positions. We initiated these at the latest closing (25 Jun) of MYR3,520. To manage risks, the stop-loss is set below MYR3,350.

The immediate support level is maintained at MYR3,350 or 21 Jun’s low, then MYR3,251, or 18 Jun’s low. Towards the upside, the resistance levels are still at MYR3,550 – the high of 14 Jun, and MYR3,650 or 16 Apr’s low.

Source: RHB Securities Research - 29 Jun 2021