The Crude Palm Oil Futures (FCPO) extended its strong performance yesterday, decisively breaching the MYR4,680 resistance level to close significantly higher at RMR4,710.
According to a technical analysis report by RHB Investment Bank, the commodity opened the session at MYR4,614 and dipped briefly to an intraday low of RM4,613. However, it soon embarked on a steady ascent to reach a session high of RM4,715 before settling near that peak.
The day’s price action formed a Bullish Marubozu candle pattern. In technical analysis, this pattern—characterized by a long body with little to no “wicks”—indicates that buyers controlled the price from the opening bell to the close.
“This strong price movement, marked by a second consecutive bullish candle, reaffirms that the bulls are firmly in control of the market,” RHB noted. The breakout above previous resistance has now cleared a path for the current upward trajectory to continue.
With the breach of the RM4,680 level, the technical landscape for FCPO has shifted:
Immediate Resistance: MYR4,800, followed by the psychological barrier of RM4,900.
Immediate Support: In the event of profit-taking, the first line of support is now established at MYR4,600, followed by RM4,500.
Given the resilient upward structure, RHB maintains its positive trading bias.
Traders are advised to maintain long positions initiated at the close of March 6 (RM4,367). To manage downside risks, the research house has set the stop-loss threshold at RM4,500.
