KUALA LUMPUR (Dec 27): RHB Retail Research said crude palm oil futures (FCPO) may trend higher as the commodity's upward momentum continued after it posted a third consecutive white candle.

In a technical analyser today, the research house said the commodity surged RM80 to close at RM3,003, off the session's low of RM2,930 yesterday and recording the highest point in more than two years, which has enhanced the bullish sentiment.

As such, RHB Retail Research kept its bullish view on the FCPO's outlook.

It also said the next support would likely be at RM2,685, which was the low of Dec 2.

"On the other hand, we are eyeing the immediate resistance level at RM3,075, determined from the previous high of Feb 15, 2017.

"The next resistance is anticipated at RM3,202, obtained from the previous high of Dec 19, 2016," it said.

Hence, the research house advised traders to stay long, in line with its initial recommendation to have long positions above the RM2,175 level on Oct 9.

A trailing-stop can be set below the RM2,806 threshold in order to lock in part of the profits, it said.

Meanwhile, according to Bloomberg, FCPO closed at highest price record with concerns about output from second-biggest producer Malaysia prompting investors to buy more at the end of 2019.

It said crude palm oil production in the Southeast Asian country is estimated to have dropped 16.4% during Dec 1 to Dec 20 from a month earlier, according to the Malaysian Palm Oil Association.

"The growers' group said output fell 20% in Peninsular Malaysia, 10.9% in Sabah and 7.4% in Sarawak. The market was also supported by firmer crude oil prices, which increased the tropical oil's biofuel appeal," it reported.

Still, gains in futures were capped by Intertek data showing Malaysia's palm oil exports slumped 12.8% from a month earlier to 1.04 million tons during Dec 1 to Dec 25, Bloomberg reported.

According to the newswire, cargo surveyor AmSpec Agri said Malaysia shipments declined 9.6%. The world's most-consumed cooking oil has surged 41.6% so far this year after sharp declines in the past two years, and heads for its best year since 2010.