Maintain long positions. The FCPO November futures contract rose MYR49.00 to settle at MYR4,447 despite mild profit taking activities emerging yesterday. On the first trading day of the week, the commodity opened at MYR4,435 and rose to the day’s high of MYR4,518. In the afternoon session, the commodity retraced lower to close at MYR4,447. Although the bears took profit yesterday, the commodity managed to close in positive territory and printed a “higher low” bullish pattern. The commodity may consolidate near the MYR4,400 immediate support level before resuming its upward movement. As long as the stop-loss remains intact, we maintain our positive trading bias.

Traders should hold their the long positions, which were initiated at MYR4,511 or the closing level of 11 Aug. For risk management purposes, the stop-loss is revised to MYR4,300.

The immediate support is shifted higher to MYR4,400, followed by the lower support at the MYR4,300 round figure. Meanwhile, the immediate resistance is kept at MYR4,525, or the high of 12 May, followed by MYR4,700.

Source: RHB Securities Research - 17 Aug 2021