FCPO

• Stay long above MYR2,700. The positive view held despite the black candle of 19 Feb was vindicated after yesterday’s rise. Buying was relentless yesterday, as the commodity rose on a “Long White Day”, brushing off the black candle of 19 Feb. The commodity even closed above MYR2,750 and the move also covered the gap of 24 Sept 2013. This shows that the upward movement that started after the white candle of 15 Jan is not easing just yet, which maintains the upward movement that has returned after the false breakout of MYR2,220 in July 2013.
  
  Thus, the buying support may continue today. A firm upside bias should keep the commodity above yesterday’s low of MYR2,700. It is better for the bulls if the commodity stays above MYR2,750, as that will discourage sellers from reacting to the high daily RSI level. The strong upward momentum should continue as a result and the next resistance is at MYR2,800, near the low of 20 Sept 2013. Immediate supports are at MYR2,735, near 19 Feb’s high, followed by 18 Feb’s high of MYR2,717. A failure to hold above both levels will put doubt on the strength of the buying support. A close below MYR2,700, though unlikely, may be enough to confirm the return of sellers. This will see the commodity giving back yesterday’s gain, which should take buyers by surprise. Selling will intensify as a result and supports are seen at MYR2,685 –near 18 Feb’s low and MYR2,670 – near 2 Jan’s high.