Crude palm oil futures (FCPO) have regained strong upward momentum after breaking above the RM4,700-per-tonne level, prompting RHB Research to adopt a bullish trading stance with expectations of further gains towards RM4,900.
In a technical market note, the research house said the benchmark FCPO contract closed at RM4,710 per tonne, marking a decisive breakout that signals renewed buying interest.
The contract opened at RM4,619 before touching an intraday low of RM4,616 and climbing to a session high of RM4,721. It ended the day with what RHB described as a fresh bullish candlestick pattern, indicating strengthening upward momentum.
According to the research house, the breakout above RM4,700 suggests the market is now targeting the next key resistance level at RM4,900, provided prices remain above critical support levels.
RHB noted that both the 50-day and 200-day simple moving averages (SMA) are now acting as support, reinforcing the positive technical outlook.
The research house said the bullish trend is expected to remain intact as long as FCPO prices stay above RM4,530 per tonne.
Following the breakout, RHB has closed its previous short trading position, which was initiated at RM4,481 on May 12, after its stop-loss level of RM4,700 was triggered.
The research house has now initiated a long position at RM4,710, with a revised stop-loss set at RM4,530 to manage downside risks.
From a technical perspective, RHB identified RM4,530 as the immediate support level, followed by a lower support at RM4,390.
On the upside, the first resistance is projected at RM4,900, with a stronger resistance level seen at RM5,100 should the current rally continue.
