RHB Retail Research

FCPO - Bulls Are Hanging On

rhboskres
Publish date: Wed, 09 Dec 2020, 05:18 PM
rhboskres
0 9,021
RHB Retail Research

Maintain long positions. The FCPO closed MYR16.00 stronger at MYR3,332 yesterday, as it reversed from an intraday low of MRY3,237 towards the final two hours. However, the bulls were clearly rejected from the MYR3,366 resistance point, as the commodity failed to sustain its breakout from this threshold on an intraday basis. While the commodity has been rebounding over the past two weeks, the strength has been relatively weak. This casts doubt over the FCPO’s readiness to extend its multi-month uptrend in the near term. Towards the downside, we maintain that the risk of it undergoing a deeper correction would be minimal, as long as the MYR3,000 level is not breached. As such, we maintain a positive trading bias.

Traders should remain in long positions. We initiated these at MYR3,338, the closing level of 27 Nov. To manage risks, a stop-loss can now be set below the MYR3,300 mark.

We maintain the immediate support at MYR3,300, followed by MYR3,255 – the price point of 30 Nov. Conversely, the immediate resistance is set at MYR3,366, the high of 1 Dec. This is followed by MYR3,420, the high of 19 Nov.

Source: RHB Securities Research - 9 Dec 2020

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calvintaneng

Sure hold tightly as demand more than supply

2020-12-09 17:25

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