RHB Retail Research

FCPO: Bearish Momentum Picking Up Pace

Publish date: Wed, 24 Nov 2021, 04:47 PM
0 9,020
RHB Retail Research

Maintain long positions. The FCPO’s upside movement was again blocked by the MYR5,000 resistance, and it shed MYR107.00 to close at MYR4,852. Yesterday, it gapped up at the open at MYR5,020 and rose to the day’s high of MYR5,025. Sentiment turned negative in the afternoon, and after the session break, it gapped down and dropped to the day’s low of MYR4,842 before closing. The latest bearish candlestick has engulfed the previous three sessions and points to a strong negative momentum ahead. Coupled with RSI heading south below the 50% threshold, the commodity may see a downward correction towards the 50-day SMA line. Despite the commodity facing strong selling pressure, the stop-loss remains intact. As such, we make no change to our positive trading bias.

Traders should remain in long positions, initiated at MYR4,899 or the closing level of 17 Nov. To mitigate the downside risks, the stop-loss has been set at MYR4,850.

We revise the immediate support to MYR4,850, followed by MYR4,700. On the other hand, the nearest resistance remains at MYR5,000, followed by MYR5,069 ie the high of 19 Nov.

Source: RHB Securities Research - 24 Nov 2021

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