RHB Research has maintained its bearish outlook on crude palm oil (CPO) futures despite a marginal rebound in the benchmark futures contract, citing persistent selling pressure and weakening technical indicators.
In its latest technical report, RHB said the FCPO contract gained RM4 to settle at RM4,772 per tonne on Thursday, after trading between RM4,767 and RM4,811.
The contract closed near its intraday low, forming a bearish candlestick that suggests the recovery was a temporary rebound rather than a sustained reversal.
RHB noted that the Relative Strength Index (RSI) continued to trend lower, indicating that bearish momentum remained intact. FCPO also remained significantly below its 50-day simple moving average, reinforcing the prevailing medium-term downtrend.
The research house expects selling pressure to return if prices recover towards the 50-day moving average.
RHB identified immediate support at RM4,700, followed by RM4,600, while resistance stands at RM4,850 and RM4,950.
It maintained its negative trading bias unless FCPO rises above RM4,950, recommending that traders retain the short position initiated at RM4,768 on Sept 23, with the stop-loss level unchanged at RM4,950.
