Maintain long positions. The FCPO continued its positive momentum for two consecutive sessions yesterday, where it closed MYR44.00 higher, at MYR4,021. It opened at MYR3,979 and then whipsawed between the day’s low and high of MYR3,927 and MYR4,056, before closing at MYR4,021. With the continuation of the bullish momentum, the commodity is expected to move beyond the MYR4,000 territory in the medium term. Nevertheless, we do not discount the possibility of a mild pullback for a consolidation above the 50-day SMA line – which may happen in the near future. Since the bullish momentum remains intact, we maintain a positive trading bias.

We maintain long positions, which were initiated at the close of 13 Jul, or MYR3,977. To manage risks, the stop-loss is revised upwards to the MYR3,863 support level.

The nearest support level is revised to the MYR4,000 psychological mark, while the next support level is set at MYR3,863, or the close of 12 Jul. The nearest resistance level is at MYR4,065 (the high of 8 Jun), and subsequently at MYR4,260 (the high of 3 Jun).

Source: RHB Securities Research - 15 Jul 2021