RHB Retail Research

FCPO - Bullish Momentum Continues

Publish date: Wed, 05 Jan 2022, 05:54 PM
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RHB Retail Research

Maintain long positions. The FCPO extended its upward movement on strong buying interest yesterday. The commodity climbed MYR57.00 to close stronger at MYR4,914. On Tuesday, it opened at MYR4,855. After touching the session’s low of MYR4,799, it turned north and progressed higher to reach the session’s high of MYR4,922 before closing. As mentioned previously, the bulls remained in control of the session and set their sights on the MYR4,949 resistance. Breaching the immediate threshold would see another leg testing the MYR5,000 psychological resistance. In the event profit-taking activities arise, we believe the 50-day SMA line will form a strong support. Since the bulls are still driving the market, we make no change to our positive trading bias.

Traders should stick to the long positions initiated at MYR4,649 – the closing level of 24 Dec. To protect the downside risks, the trailing-stop is now at MYR4,780.

The immediate support has shifted to MYR4,800, then MYR4,601 or the low of 27 Dec. On the other hand, the immediate resistance is now at MYR4,949 – 8 Dec’s high – followed by MYR5,000.

Source: RHB Securities Research - 5 Jan 2022

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