Crude palm oil futures (FCPO) came under heavy selling pressure on Thursday, falling RM56 to close at RM4,554 per tonne, with RHB Research maintaining a negative trading bias after the contract broke below the key RM4,600 support level.
The benchmark contract opened at RM4,615 and touched an intraday high of RM4,627 before reversing sharply to a low of RM4,528. It eventually settled at RM4,554, forming a strong bearish candlestick.
RHB said the latest move confirmed that sellers remain in control, with FCPO trading persistently below its 50-day simple moving average.
The research house added that the Relative Strength Index remains firmly in bearish territory, indicating that downward momentum is still strong.
Following the break below RM4,600, RHB expects FCPO to test immediate support at RM4,500, followed by RM4,400.
The research house maintained its short position initiated at the Sept 23 close of RM4,768 and shifted its stop-loss level to RM4,750.
Resistance is now seen at RM4,650, followed by RM4,750.
RHB said the technical setup remains negative for now, with any sustained recovery likely requiring FCPO to reclaim the higher resistance levels.
