Maintain long positions. Following the bearish session on Tuesday, the FCPO gapped down on Wednesday, tumbling MYR107 to settle at MYR4,301 – marginally above the stop-loss level. Yesterday, the commodity had a weak opening, gapping lower to start at MYR4,326. After gyrating between MYR4,352 and MYR4,277, the commodity closed weaker at MYR4,301. To recap, the latest bullish movement started on 11 Aug after crossing the MYR4,300 level. Breaching below this crucial level will erase the gains since 11 Aug and may see sentiment turn bearish again. If the current negative momentum follows through, the next support could be found at MYR4,169. On the other hand, if the commodity is able to close the gap and move back above MYR4,400, the FCPO may rally higher. At this juncture, we will keep our our positive trading bias until the stop-loss is triggered.

Traders should stick to long positions, which were initiated at MYR4,511 or the closing level of 11 Aug. To mitigate trading risks, the stop-loss is set at MYR4,300.

The immediate support is marked at the MYR4,300 round figure, then the lower support at the MYR4,169, or the low of 6 Aug. Conversely, the immediate resistance revised to MYR4,400, followed by MYR4,460 – the low of 12 Aug.

Source: RHB Securities Research - 19 Aug 2021