RHB Retail Research

FCPO: Bouncing Off The Immediate Support

Publish date: Tue, 14 Dec 2021, 08:35 AM
0 9,020
RHB Retail Research

Maintain long positions. Despite the FCPO’s weak opening yesterday, it managed to stage a strong rebound from the support, recording a smaller loss of MYR8.00 to settle at MYR4,792. The commodity initially gapped down and opened weaker at MYR4,723. After touching the MYR4,719 session low, the bulls lifted it to touch the MYR4,842 session high before the close. Although the FCPO is trading away from the 50-day SMA line, the bulls have not given up yet. They managed to contain the selling pressure at the MYR4,734 support. If the immediate support gives way, we expect a strong downside correction towards the MYR4,567 level. Meanwhile, the commodity may consolidate and attempt to reclaim the 50-day SMA line in the coming sessions. We retain our positive trading bias until the stop loss is breached.

We recommend traders stick with the long positions initiated at MYR4,929, ie the closing level of 7 Dec. To mitigate the trading risks, the initial stop-loss threshold is placed at MYR4,700.

The immediate support remains at MYR4,734, ie 6 Dec’s low, and is followed by MYR4,567, which was 2 Dec’s low. On the upside, the nearest resistance is eyed at MYR4,850 and followed by MYR4,949, ie the high of 8 Dec.

Source: RHB Securities Research - 14 Dec 2021

Be the first to like this. Showing 0 of 0 comments

Post a Comment