Maintain long positions. The FCPO printed its third consecutive bullish session yesterday, as it rose MYR117.00 to settle at MYR4,447 – firming up the positive momentum above the 50-day SMA line. After opening higher at MYR4,350, it merely touched the day’s low of MYR4,320 before continuing with strong bullish momentum towards the day’s peak of MYR4,460, before closing. The three consecutive long white candlesticks or “Three White Soldiers” candlestick pattern signifies the recent uptrend reversal – bouncing off firmly above the average line. Supported by the RSI’s increasing strength towards the 60% threshold, the positive strength is expected to follow through to breach September’s high of MYR4,480. Nevertheless, we do not discount the possibility of mild profit-taking – towards the MYR4,320 immediate support level – in the immediate term, amid the recent strong gains. As such, we are keeping our positive trading bias (following the shift in our previous note).

We stay with the long positions initiated at the closing level of 22 Sep, or MYR4,330. To manage trading risks, the initial stop-loss is revised upwards to MYR4,210.

We revise the immediate support to MYR4,320, or the low of 23 Sep, followed by MYR4,210, which was 22 Sep’s low. Meanwhile, the immediate resistance is set at MYR4,480 or the high of 8 Sep, followed by the MYR4,600 threshold.

Source: RHB Securities Research - 24 Sept 2021