07/02/2026 (Business Today) - Crude Palm Oil (CPO) futures experienced renewed selling pressure yesterday, slipping by RM 19 to settle at RM4,206 per tonne. The commodity, which opened the session at RM4,226, initially touched an intraday high of RM4,233 before retreating to an intraday low of RM4,193.

The closing price resulted in a “lower high” bearish candlestick pattern for the second consecutive session. According to RHB Investment Bank, this technical formation—combined with a downward-trending Relative Strength Index (RSI)—indicates that the recent upward momentum is beginning to slow.

The market sentiment has pivoted toward caution as the commodity drifts toward immediate support zones. While the current trend shows signs of cooling, RHB maintains a positive trading bias as long as prices remain above a critical floor.

Following the recent decline, analysts suggest there is a possibility of a further slide toward the RM4,100 level. However, a technical bounce remains on the table, with a target aimed at the RM4,400 resistance mark.

“As long as the commodity remains above the RM4,100 support level, we stand by our positive trading bias,” the report stated.

Current Recommendation: Maintain long positions (buy) initiated on the Jan 21 close (at RM4,197).

Risk Management: To mitigate downside risks, the stop-loss threshold has been updated to RM4,100.

While the technical indicators suggest a pullback, the broader market is currently navigating several fundamental variables:

Traders are awaiting the upcoming Malaysian Palm Oil Board (MPOB) report due on February 10, which will provide clarity on national inventory levels. Seasonal restocking ahead of Ramadan and the Spring Festival continues to offer an underlying cushion for prices. Weakness in rival edible oils on the Dalian and Chicago exchanges has contributed to the current cautious atmosphere.

https://www.businesstoday.com.my/2026/02/07/cpo-price-projected-to-slip-further-to-rm4100/