Maintain long positions. The FCPO surged north during the first trading session in 2022. The commodity jumped MYR160.00 to close at MYR4,857. Initially, it opened at MYR4,718 and swiftly climbed to the day’s high of MYR4,888, then trended sideways for the rest of the session before closing – forming a White Marubozu candlestick. The long bullish candlestick reaffirms the fact that the bulls are fully in control, and may lift the commodity higher. If it pushes above the nearest resistance of MYR4,888, the bulls may set their sights at the MYR4,949 point. However, we do not discount the possibility that the bears may attempt to take profits in the immediate session – but we also believe that the 50-day SMA line will lend support. With the bullish momentum still in play, we hold on a positive trading bias.

We advise traders to remain in the long positions initiated at MYR4,649 – the closing level of 24 Dec. To mitigate the trading risks, the initial stop-loss has been fixed at MYR4,601.

The immediate support has been revised higher to MYR4,667 – 30 Dec 2020’s low – followed by MYR4,601 or the low of 27 Dec. Meanwhile, the immediate resistance is now at MYR4,888 (3 Jan’s high), then MYR4,949 (established on 8 Dec).

Source: RHB Securities Research - 4 Jan 2022