RHB Retail Research

FCPO: A Fresh All-Time-High

Publish date: Thu, 21 Oct 2021, 04:53 PM
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RHB Retail Research

Maintain long positions. The FCPO surged by MYR127.00 to close at a new record high of MYR5,071, smashing the previous record of MYR5,039. Yesterday, the commodity gapped up at the opening at MYR4,966. After touching the session’s low of MYR4,954, it climbed up to the session’s high of MYR5,090, before closing at MYR5,071. The long white bullish candlestick indicates that the bulls have overpowered the bears, and the momentum is maximum throttle now. Expect the follow-through price action to climb higher, pushing the commodity into uncharted territory. Although there is a very slim chance that we may see the momentum being reversed, anticipate a strong support point to be found near the previous peak of MYR5,039, which is acting as a potential support level now. As the bulls continue to dominate the sessions, we make no change to our positive trading bias.

Traders should stay in long positions initiated at the closing level of 22 Sep or MYR4,330. To manage downside risks, we raise the trailing-stop to MYR4,954.

The nearest support has been revised upwards to MYR5,039 (the high of 13 Oct), followed by MYR4,954 or the low of 20 Oct. On the other hand, the immediate resistance is projected at MYR5,100, followed by MYR5,150.

Source: RHB Securities Research - 21 Oct 2021

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