RHB Retail Research

FCPO: Recording a New High

Publish date: Wed, 23 Feb 2022, 05:08 PM
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RHB Retail Research

Maintain long positions. The FCPO extended its uptrend for the fourth consecutive session yesterday, surging MYR165.00 to close at MYR5,840 – recording a new high. Yesterday, the commodity opened at MYR5,679. After printing the session’s low of MYR5,624, it headed north and breached the previous peak of MYR5,773. The momentum then accelerated to test the session’s high of MYR5,856, before the close. The latest session has negated the Dark Cloud Cover formed on 31 Jan, with the bulls overpowering the bears. While the bulls are taking the lead now, expect a follow-through momentum towards MYR5,900 and the MYR6,000 psychological level. The RSI is crossing above the trendline, which indicates that the bullish momentum is in play now – which prompts us to maintain a positive trading bias.

We recommend that traders maintain the long positions initiated at MYR5,675, or the close of 21 Feb. To manage the trading risks, the stop-loss has been adjusted higher to MYR5,500, from MYR5,300.

The immediate support is now at MYR5,624 – 22 Feb’s low –followed by MYR5,524 or the low of 18 Feb. Conversely, the nearest resistance is at MYR5,900, then MYR6,000.

Source: RHB Securities Research - 23 Feb 2022

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