Maintain long positions. Mild profit-taking activities yesterday led the FCPO to retrace by MYR23.00 to close at MYR4,849. It gapped down at the open at MYR4,831. After touching the day’s low of MYR4,805, the commodity moved sideways until buying interest emerged in the afternoon and lifted it to test the MYR4,862 intraday high. As the closing price is higher than the opening price, this indicated that buyers were trying to stay on-course. At this juncture, the FCPO is still posing a “higher high” bullish pattern, and the negative momentum is still at a very mild stage. If the correction is extended, we expect MYR4,650 to act as a strong support. For now, the bullish structure remains intact and we make no change to our bullish trading bias.

Traders should stay in long positions, initiated at the closing level of 22 Sep or MYR4,330. To control trading risks, the trailing-stop mark is set at MYR4,650.

The immediate support is at MYR4,800, followed by MYR4,650. The immediate resistance is at the new high of MYR4,900, then the psychological level of MYR5,000.

Source: RHB Securities Research - 8 Oct 2021