Maintain long positions. The FCPO underwent strong bearish pressure yesterday, and shed MYR88.00 to close at MYR4,841 – closing marginally below the 50-day SMA line (MYR4,854). The commodity opened at MYR4,939. After it touched the session’s high of MYR4,929, it gapped downwards and progressed south to the session’s low of MYR4,792 before closing. While this led to a bearish candlestick, it did not erase the bullish candlestick that was formed on 7 Dec. This, together with the immediate support of MYR4,734 remaining intact, leads us to think that the bulls still have the technical advantage. However, since the commodity closed below the 50-day SMA line, expect the bulls to stage a rebound in near future to reclaim the moving average line. The uptrend is showing early signs of weakness but we will stick to a positive trading bias until the stop-loss is triggered.
We recommend that traders stick to long positions, initiated at MYR4,929 or the closing level of 7 Dec. To mitigate the downside risks, the initial stop-loss is set at MYR4,700.
The immediate support is at MYR4,734 (6 Dec’s low), followed by MYR4,567 (2 Dec’s low). Meanwhile, the first resistance would be MYR4,949 – 8 Dec’s high – then MYR4,995 or the high of 25 Nov.
Source: RHB Securities Research - 9 Dec 2021
Created by rhboskres | Aug 26, 2024