Crude Palm Oil (FCPO) futures on Bursa Malaysia are entering a “cautious consolidation” phase, with technical indicators suggesting a shift toward a bearish outlook. According to the latest technical report from RHB Research, the market has seen a moderate pullback after a period of strong gains, signaling a “sell” bias for traders.
In recent trading, the benchmark contract slipped by RM7 to close at RM4,179, oscillating between a high of RM4,205 and a low of RM4,143. This negative price action indicates that market sentiment has turned defensive following a robust rally from the MYR 4,000 support level.
RHB highlights a “sideways phase” with a downward tilt, pointing to several critical technical barriers:
Analysts expect the price to re-test the 50-day Simple Moving Average (SMA) and the psychological support floor of RM4,000.
The 200-day SMA continues to trend downward, acting as an “overhead resistance” that exerts consistent selling pressure on the commodity.
The report notes that in a prevailing “down-trending market,” support levels are inherently fragile. With the bearish momentum regaining its rhythm, RHB is maintaining a negative trading bias.
Traders are advised to exercise caution as the commodity moves into a consolidation phase, with the potential for further price corrections if the current support levels fail to hold against the descending 200-day moving average.
