Crude palm oil (CPO) futures extended their technical rebound on Tuesday, but RHB Research remains cautious on the commodity’s near-term outlook, saying the recovery continues to unfold within a broader corrective trend.
The benchmark September FCPO contract rose RM40 to close at RM4,573 per tonne after opening at RM4,533.
During the session, prices briefly slipped to an intraday low of RM4,518 before gaining momentum to reach a high of RM4,605, eventually settling with what the research house described as a mildly bullish tone.
Despite the latest gains, RHB Research noted that FCPO remains below the key resistance level of RM4,700, indicating that the broader technical picture continues to favour sellers.
“The recovery still fits within a broader corrective phase as the commodity is now trading below the key RM4,700 resistance level,” the research house said in a technical note.
RHB Research added that the downward trend could resume if prices fail to break convincingly above the resistance level, prompting it to maintain a negative trading bias on the commodity.
The research house advised traders to retain short positions initiated at the close on May 12 at RM4,481, while placing a stop-loss at RM4,700 to limit downside risk.
On the technical front, immediate support is identified at RM4,390, with stronger support at RM4,250. Resistance is seen at RM4,700, followed by RM4,900 if buying momentum strengthens further.
Market participants are expected to monitor whether FCPO can sustain its recent rebound or resume its broader corrective decline, with the RM4,700 level viewed as a key technical threshold in the near term.
