RHB Retail Research

FCPO: Bullish Momentum At Full Throttle

Publish date: Fri, 25 Feb 2022, 05:01 PM
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RHB Retail Research

Maintain long positions. The FCPO closed at a record high amid strong bullish momentum. The commodity surged MYR471.00 to close at MYR6,453 yesterday. It opened at MYR5,990. Sentiment turned positive during the morning session, where the commodity gapped up and climbed higher. It breached the MYR6,000 psychological resistance and printed the new high of MYR6,465 before closing. If the positive momentum follows through, it may test the upside resistance of MYR6,560. In the event the commodity pulls back on profit-taking, expect the MYR6,250 level to provide downside support. The RSI indicator should continue to trend higher, affirming that buying momentum is in full throttle now. With the bulls still in control and not showing any signs of fatigue, we maintain our positive trading bias.

Traders should stick to the long positions initiated at MYR5,675, or the close of 21 Feb. To protect the downside risks, the stop-loss has been lifted to MYR5,856, from MYR5,500.

The immediate support is now at MYR6,250, followed by MYR5,856 or the high of 22 Feb. Towards the upside, the first resistance is set at MYR6,560, followed by MYR6,800.

Source: RHB Securities Research - 25 Feb 2022

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