RHB Research has maintained its positive trading bias on crude palm oil futures (FCPO) after the commodity gained RM52 to close at RM4,936 per tonne, keeping it on course to test the psychological RM5,000 resistance level.
The commodity opened at RM5,027 before trading between an intraday low of RM4,907 and a high of RM5,049. It eventually settled at RM4,936, forming a gap-up bearish candlestick that suggests some profit-taking despite the broader upward trend.
RHB said the Relative Strength Index (RSI) is pointing higher, indicating that bullish momentum remains intact.
The research house expects FCPO to make another attempt at the RM5,000 resistance level, with a successful breakout potentially paving the way for a move towards RM5,100.
The upward trajectory of both the 50-day and 200-day simple moving averages continues to provide additional technical support for the commodity.
However, RHB cautioned that traders could take profits following the recent gains, as reflected in the latest intraday candlestick formation.
Should a pullback occur, RM4,800 is expected to provide immediate support, followed by a lower support level at RM4,700.
RHB maintained its positive trading stance and recommended that traders retain the long positions initiated at RM4,710, based on the July 23 closing level.
The research house placed its stop-loss threshold at RM4,700 to manage downside trading risk.
Overall, RHB expects the bullish technical structure to remain intact as long as FCPO maintains its key support levels, with RM5,000 and RM5,100 identified as the next upside targets.
