Stop-loss triggered; initiate long positions. The FCPO saw strong bullish momentum emerging yesterday, and it surged MYR138.00 to close at MYR4,330. On Wednesday, the commodity opened stronger at MYR4,210. It then progressed higher on strong buying interest to print the session’s high of MYR4,342 before closing. The long white candlestick pattern indicates that the bulls were in control of the session. Coupled with the RSI crossing above the 50% threshold, the commodity is shifting back into a positive momentum, and is poised to test the MYR4,400 psychological level, followed by September’s high of MYR4,480. Meanwhile, if profit-taking activities arise, expect MYR4,210 to provide strong support. Since the stop-loss has been triggered, we are shifting to a positive trading bias.

We closed out short positions, which were initiated at MYR4,173 or the closing level of 20 Sep, after triggering the stop-loss at MYR4,250. Conversely, we initiate long positions at the closing level of 22 Sep, ie MYR4,330. To manage trading risks, the initial stop-loss has been set at MYR4,100.

We revise the nearest support to MYR4,210 – the low of 22 Sep – followed by MYR4,125 or the low of 21 Sep. Meanwhile, the immediate resistance is pegged at MYR4,400, followed by MYR4,480 or the high of 8 Sep.

Source: RHB Securities Research - 23 Sept 2021