Crude palm oil futures (FCPO) extended their gains this week, rising RM37 to close at RM4,606 per tonne, although analysts at RHB Research continue to maintain a cautious outlook amid expectations of strong resistance near the RM4,700 level.
The benchmark FCPO contract opened higher at RM4,593 and briefly dipped to an intraday low of RM4,568 before climbing to a session high of RM4,614. It eventually settled at RM4,606, supported by improving short-term buying momentum.
According to RHB Research, the latest trading session formed a higher-low intraday candlestick pattern, a technical signal that suggests bullish momentum is strengthening in the near term.
The research house said the commodity could continue advancing towards the RM4,700 resistance level, although it expects substantial selling pressure to emerge around that area.
“While the current price action remains positive, resistance levels remain significant within the broader bearish setup,” the firm noted in its technical outlook.
RHB cautioned that if profit-taking intensifies near RM4,700, palm oil prices could retrace and test support at RM4,390, with a further downside support level identified at RM4,250.
Despite the recent rebound, the research house has maintained its negative trading bias, advising traders to retain short positions initiated at RM4,481, the closing level recorded on May 12.
To manage risk, RHB recommended a stop-loss threshold of RM4,700, which coincides with the key resistance zone currently being monitored by the market.
On the upside, a sustained breakout above RM4,700 could open the path towards the next resistance level at RM4,900, although analysts believe the near-term balance of risks remains tilted towards consolidation rather than a sustained rally.
The FCPO market has been supported recently by stronger vegetable oil prices and expectations surrounding global edible oil supply dynamics, although traders remain watchful of export demand trends, production levels and broader
