RHB Retail Research

FCPO: Bouncing Towards The MYR4,500 Resistance

Publish date: Thu, 23 Dec 2021, 05:35 PM
0 9,020
RHB Retail Research

Keep short positions. The FCPO continued its rebound yesterday, as rose MYR64.00 to close at MYR4,448 – hitting the MYR4,500 threshold. The commodity gapped up to open at MYR4,424 yesterday, but quickly took profits towards the day’s low of MYR4,380 during the early night trading session. Buying momentum then recovered to propel the commodity towards north throughout the session. It hit the day’s high of MYR4,500 before retracing moderately towards the close at MYR4,448. The latest white body candlestick, with upper and lower shadows, implies the bullish continuation following the recent “higher low” bullish structure above the 200-day SMA line – in line with our expectations. However, the medium-term bearish momentum remains intact below the MYR4,500 resistance level, as strong selling pressure is expected to cap the bulls. Unless the bullish momentum accelerates to trigger the trailing-stop, we stick to our negative trading bias.

We recommend that traders maintain the short positions initiated at MYR4,699, or the closing level of 14 Dec. To manage trading risks, the trailing-stop is set at MYR4,567 – the low of 2 Dec.

The immediate support is fixed at MYR4,250, followed by MYR4,125. Towards the upside, the immediate resistance is maintained at MYR4,500, then the higher hurdle is pegged at MYR4,567, or 2 Dec’s low.

Source: RHB Securities Research - 23 Dec 2021

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

Post a Comment