Crude Palm Oil Futures Risks Falling To RM4,400 As Trading Turns Bearish
31/10/2026 (Business Today) - Crude palm oil (CPO) futures could extend their decline towards RM4,400 per tonne after breaching a key technical support level, prompting RHB Research to reverse its trading stance from bullish to bearish.
In its latest technical analysis, the research house said Bursa Malaysia’s crude palm oil futures (FCPO) tumbled RM69 to close at RM4,616 per tonne on Thursday (Oct 29), breaking below the crucial RM4,650 support level.
The benchmark contract opened at RM4,692 and briefly climbed to an intraday high of RM4,705 before heavy selling pressure pushed prices to a low of RM4,596.
FCPO subsequently closed near the session’s low, forming a long bearish candlestick that RHB said indicated strengthening selling momentum.
The research house noted that the latest decline suggested the rebound from the RM4,500 level had lost momentum, with prices forming a series of progressively lower highs since reaching RM4,850.
RHB said the Relative Strength Index (RSI) had slipped further below the neutral 50 level, while FCPO remained well below its 50-day simple moving average (SMA), reinforcing the negative technical outlook.
The research house expects prices to continue declining towards the 200-day SMA as bearish momentum strengthens.
Immediate support is located at RM4,500 per tonne, with a breach potentially triggering a deeper correction towards RM4,400.
On the upside, resistance levels are identified at RM4,750 and RM4,850.
RHB said the recent breakdown below RM4,650 indicated that sellers were regaining control of the market, increasing the likelihood of further downside pressure.
Following the breach of its stop-loss level, RHB advised traders to close the long position initiated at RM4,769 on Oct 16.
The research house recommended opening a new short position at the Oct 29 closing price of RM4,616, with a stop-loss threshold of RM4,850 to manage trading risks.
The previous long position had declined RM153 per tonne from its entry price to the latest close.
RHB maintained that the technical outlook had shifted decisively negative, with the breakdown of key support and weakening momentum indicators suggesting further correction risks.
The research house expects FCPO to test RM4,500 in the near term, while a decisive breach could expose the commodity to additional selling pressure towards RM4,400.