RHB Retail Research

FCPO: Bearish Momentum Taking a Pause

Publish date: Thu, 02 Dec 2021, 05:43 PM
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RHB Retail Research

Maintain short positions. The FCPO saw the bears taking a breather on Wednesday, rebounding MYR12.00 to close at MYR4,684. Yesterday, the commodity opened higher at MYR4,718. Despite a stronger opening, it retraced to close at MYR4,684 after touching the session’s high of MYR4,737. In the latest session, the commodity printed a “higher low”, pointing to a tapering in selling pressure. As it has yet to print a fresh “higher high”, the bearish structure remains intact. For the immediate session, the commodity will likely consolidate sideways, before resuming its downward movement. For now, we are maintaining a negative trading bias until the stop-loss has been breached.

Traders should stick to short positions initiated at MYR4,849, or the closing level of 26 Nov. To mitigate the trading risks, the stop-loss has been revised to MYR4,900 from MYR5,000.

The immediate support stays at MYR4,600, followed by MYR4,486 (4 Oct’s low). Towards the upside, the first resistance is pegged at MYR4,800, followed by MYR4,900.

Source: RHB Securities Research - 2 Dec 2021

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