Maintain long positions. The FCPO carried on with its upward movement yesterday, surging MYR134.00 to settle at MYR4,872 – another new record close. The commodity opened with a positive gap at MYR4,816 and touched the day’s low of MYR4,804 before jumping higher during the earlier session to hit the intraday high of MYR4,880. It then retraced mildly before oscillating sideways towards the late session – this was before strong buying interest re-emerged to lift the FCPO higher – near to its day’s peak at the close. The latest bullish candlestick represents the follow-through bullish momentum for a third consecutive session after breaching the MYR4,800 level – forming a “Three White Soldiers” bullish pattern. As the commodity is trading further away from the 50-day SMA line, the bears may decide to take profit in the immediate term. Hence, the immediate support can be found at MYR4,800 before falling further towards the MYR4,650 level. Since the FCPO is rising higher on strong momentum, we keep to our bullish trading bias.

Traders should stick to the long positions initiated at the closing level of 22 Sep, or MYR4,330. To mitigate the downside risks, the trailing-stop mark is increased to MYR4,650.

The immediate support is revised higher at MYR4,800 and followed by MYR4,650. Towards the upside, the immediate resistance is projected at the new high of MYR4,900 before marking at the psychological level of MYR5,000.

Source: RHB Securities Research - 7 Oct 2021