RHB Retail Research

FCPO: Bouncing Off The Support

Publish date: Fri, 18 Feb 2022, 07:56 AM
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RHB Retail Research

Maintain short positions. The FCPO saw mild bullish momentum yesterday, gaining MYR74.00 to settle at MYR5,507. The commodity opened at MYR5,450 and then whipsawed between the day’s low and high of MYR5,412 and MYR5,557 before retracing moderately towards the close. The white body candlestick printed yesterday saw strong buying interest above the MYR5,450 support level. Nevertheless, the RSI trendline is still showing weak momentum, which leads us to expect the latest rebound to remain premature. Hence, we still think the bearish momentum will continue to dominate the sessions. With that, we stick to our positive trading bias.

Traders are advised to stay in the short positions at MYR5,437, ie the closing level of 16 Feb. To manage trading risks, the initial stop-loss threshold is set at the MYR5,700 level.

The immediate support is shifted higher to MYR5,450 and followed by MYR5,278. Conversely, the nearest resistance is still at MYR5,700 and the MYR5,750 round number.

Source: RHB Securities Research - 18 Feb 2022

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