RHB Retail Research

FCPO: Profit-Taking Kicks In

rhboskres
Publish date: Thu, 30 Dec 2021, 06:53 PM
rhboskres
0 9,021
RHB Retail Research

Keep long positions. Traders took profit yesterday, and the FCPO shed MYR77.00 to close at MYR4,695 – still above the immediate support of MYR4,601. The commodity opened at MYR4,761 to hit the MYR4,770 mark, then inched lower towards the end of the session. It printed the intraday low of MYR4,652 before rebounding mildly at the close. The latest black body candlestick above the immediate support indicates that the bulls are taking a breather after the strong rally that kicked off from the 200-day average line on 16 Dec. As the RSI is still hovering above 50%, we expect to see the re-emergence of bullish momentum in the medium term, after consolidating between the MYR4,601 support and MYR4,806 resistance. If that happens, the rally should be extended beyond the 50-day average line towards reaching the MYR4,949 next resistance. As such, we maintain a bullish trading bias.

Traders should remain in the long positions initiated at MYR4,649, or the closing level of 24 Dec. To manage trading risks, the initial stop-loss threshold is at the immediate support of MYR4,601.

The immediate support is set at MYR4,601 – 27 Dec’s low, followed by MYR4,500. Towards the upside, the immediate resistance is fixed at MYR4,806 – 30 Nov’s high, then MYR4,949 or 8 Dec’s high.

Source: RHB Securities Research - 30 Dec 2021

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

Post a Comment