Maintain long positions. Despite mild selling pressure emerging, the FCPO stayed on an upward path, adding MYR8.00 to settle stronger at MYR4,455. The commodity started Wednesday’s session at MYR4,428. However, the bulls were nervous during the early session, resulting in the commodity falling to its day low of MYR4,379. Sentiment improved in the afternoon session, which saw strong buying interest lift the commodity to reach the day’s high of MYR4,483 just before the close. As the commodity is moving upwards and approaching September’s high, expect selling pressure to emerge near the MYR4,480 level. If the FCPO breaches the threshold, it may rise higher to record a fresh 1-month high. At this stage, while pending a breakout above the MYR4,480 level, the bullish structure of “higher highs and higher lows” remains intact, hence we make no change to our bullish trading bias.

We advise traders stay with the long positions initiated at the closing level of 22 Sep, or MYR4,330. To manage trading risks, the stop-loss is placed at MYR4,290.

The immediate support is revised to MYR4,379 – the low of 29 Sep – followed by MYR4,318, or the low of 28 Sep. Conversely, the immediate resistance is eyed at MYR4,480, or the high of 8 Sep, followed by the next resistance at the MYR4,600 round figure.

Source: RHB Securities Research - 30 Sept 2021