RHB Retail Research

FCPO: Staging a Rebound From The Immediate Support

Publish date: Mon, 13 Dec 2021, 08:42 AM
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RHB Retail Research

Maintain long positions. The FCPO bulls struggled to form its interim support, rebounding MYR22 to settle at MYR4,800. Last Friday, the commodity initially gapped up and opened at MYR4,762. It rose higher amidst a bullish momentum to test the session’s high of MYR4,841. But, it gapped down in the afternoon and bounced off the session’s low of MYR4,724 before closing in at MYR4,800. The latest session saw selling pressure contained at the MYR4,734 support – the bullish momentum will improve as long as the commodity stays above the threshold. Meanwhile, the technical setup is showing early signs of weakness as the FCPO is trading below the 50-day SMA line (MYR4,869). The commodity may consolidate above the support and stage a fresh attempt to test the MYR4,850 immediate resistance followed by the moving average line. As of now, we will keep to the positive trading bias until the stop-loss is breached.

Traders are advised to hold on to their long positions, which were initiated at MYR4,929, or the closing level of 7 Dec. For trading-risk management, the initial stop-loss is set at MYR4,700.

The immediate support remains at MYR4,734 (6 Dec’s low), followed by MYR4,567 (2 Dec’s low). On the other hand, the first resistance is changed to MYR4,850, followed by the higher resistance of MYR4,949, or the high of 8 Dec.

Source: RHB Securities Research - 13 Dec 2021

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