Business Today (21/05/2025) - RHB Investment Bank Bhd (RHB Research) is maintaining its negative trading bias on the crude palm oil futures (FCPO) despite a modest rebound on Tuesday, citing continued bearish signals on the technical chart.

The benchmark FCPO contract rose RM26 to settle at RM3,908, after opening at RM3,876 and touching an intraday high of RM3,940. RHB Research said the session closed with a bullish candlestick, reflecting sustained buying interest, but noted that the broader trend remains tilted to the downside.

“The FCPO continues to trade below both the 50-day and 200-day simple moving averages (SMA), with both averages sloping downwards,” said RHB Research. “This suggests the prevailing bearish trend is still intact.”

In addition, the Relative Strength Index (RSI) remains below the 50% mark, indicating that the rebound lacks strong momentum. Unless the FCPO breaks convincingly above the RM4,000 resistance level, the research house sees a risk of a pullback towards the RM3,700 support zone.

Traders are advised to continue holding short positions initiated at RM4,328 (4 April close), with a stop-loss set at RM4,000 to manage risk.

Immediate support is identified at RM3,700, followed by a lower support level at RM3,500. On the upside, resistance levels are pegged at RM4,000 and RM4,100.

Read more at https://www.businesstoday.com.my/2025/05/21/palm-oil-climbs-trend-remains-slippery/