RHB Research has maintained its positive trading bias on crude palm oil futures (FCPO), viewing the latest price pullback as a healthy consolidation while the broader uptrend remains intact.
FCPO retreated RM10 to close at RM4,966 per tonne on Wednesday, after opening higher at RM4,974 and reaching an intraday high of RM4,989.
Profit-taking subsequently pushed the contract to as low as RM4,918 before it recovered to close with a bearish candlestick.
Despite the weaker price action, RHB said technical indicators continue to point to an underlying bullish trend. The Relative Strength Index (RSI) remains above the 50% level, while the 50-day simple moving average continues to trend higher, supporting the near-term uptrend.
The research house said the latest retracement would remain a healthy consolidation as long as FCPO holds above its key RM4,700 support level.
RHB therefore maintained the long position initiated at RM4,710 on July 23, with the stop-loss threshold set at RM4,700.
On the technical front, immediate support is seen at RM4,700, followed by RM4,600.
Meanwhile, FCPO is approaching the psychological RM5,000 resistance level, with the next resistance pegged at RM5,100 should bullish momentum resume.
