The crude palm oil futures contract (FCPO) is poised to extend its bullish trajectory towards the RM5,100 resistance level after closing stronger at RM5,018, according to RHB Research.
The commodity started Friday’s session at RM4,967, hitting an intraday low of RM4,960 before climbing to RM5,031 and closing firmly at RM5,018.
RHB said the formation of a long bullish candlestick reaffirmed that buyers remained in control, with the market now setting its sights on the RM5,100 resistance level.
In the current bullish setup, an upside breakout of RM5,100 is likely, although profit-taking could trigger a pullback towards the immediate support level of RM4,850.
RHB maintained its positive trading bias given the prevailing bullish momentum and advised traders to retain the long position initiated at the close of July 23 at RM4,710.
To mitigate trading risks, the research house set the stop-loss level at RM4,700.
Following the recent breakout, RHB identified RM4,850 as the first support level, followed by RM4,700, while resistance is seen at RM5,100 and RM5,250.
