CPO Futures Continue Downward Trend, May Test RM4,200 Says RHB
17/05/2026 (Business Today) - Crude palm oil futures (FCPO) extended losses on Thursday, with RHB Banking Group Research maintaining its negative trading bias after prices broke below a key technical support level.
FCPO fell RM45 to close at RM4,393, after opening at RM4,435 and hitting an intraday high of RM4,456 before heavy selling pressure dragged prices down to a session low of RM4,382.
In a trading note, RHB Research said the commodity formed a “strong bearish candlestick pattern,” reinforcing expectations that sellers remain firmly in control of the market.
The research house noted that FCPO had decisively broken below the important RM4,420 support level and closed beneath its 50-day simple moving average (SMA), signalling weakening market sentiment.
“The RSI is also trending lower, indicating that bearish momentum remains strong and intact,” the note said.
RHB expects FCPO to test the next support level at RM4,300, with a further downside target at RM4,200 should selling pressure persist.
The firm advised traders to maintain short positions initiated at the May 12 closing level of RM4,481, while revising the stop-loss threshold higher to RM4,700 to manage trading risks.
On the upside, resistance levels are now seen at RM4,570 and RM4,700.
The latest decline comes amid continued volatility in the broader edible oils market, with traders closely monitoring demand trends, export data and global vegetable oil supply dynamics.