RHB Research has maintained its short trading call on crude palm oil futures (FCPO), saying the market remains under bearish pressure despite a largely directionless trading session.
The benchmark FCPO contract closed RM15 lower at RM4,594 after fluctuating between an intraday high of RM4,630 and a low of RM4,563. The contract opened at RM4,592.
According to the research house, the formation of a small-bodied candlestick reflects market indecision in the near term. However, it said the broader bearish technical structure remains intact as prices continue to trade below the key resistance level of RM4,700.
RHB expects downside pressure to persist unless prices stage a decisive breakout above the RM4,700 resistance, with the market likely to retest the RM4,530 support level in the near term.
The research house advised traders to maintain short positions initiated at the close on May 12 at RM4,481, while placing a stop-loss at RM4,700 to manage downside risk.
RHB revised its immediate support level to RM4,530, with a lower support target at RM4,390.
On the upside, the first resistance remains at RM4,700, followed by RM4,900.
The research house said its negative trading bias remains unchanged, in line with the prevailing downtrend in FCPO prices.
