RHB Research has maintained its short position on crude palm oil futures, viewing the latest price rebound as a temporary correction within a broader downtrend.
The FCPO contract gained RM43 to close at RM4,578 after opening at RM4,570. It fell to an intraday low of RM4,524 before recovering to a high of RM4,595.
Despite the stronger close, RHB said the technical structure remains bearish as FCPO continues to trade below its 50-day simple moving average, which is acting as a dynamic resistance level.
The research house sees immediate resistance at RM4,650, followed by RM4,750. It said failure to break above these levels could see the commodity resume its downward move.
RHB retained its negative trading bias and recommended traders keep the short position initiated on Sept 23 at RM4,768, with the stop-loss maintained at RM4,750.
On the downside, support is seen at RM4,500, followed by RM4,400.
