The prediction followed a bearish breakout of the ascending triangle in late September, said Fred Tam of PI Capital Research.

"It looks like we are have an ascending triangle failure pattern in our hands," he said.

"In view of this ascending triangle failure and the bearishness of its Relative Strength Index (RSI) and stochastic on three Times frames (daily, weekly, monthly charts), we are now bearish on CPO prices," he said.

Malaysia's benchmark, third month, February futures contract on the Commodity and Monetary exchange (Commex) was quoted at 2,299 ringgit a tonne last week.

"We expect further downside to test its next major support of 2,050 ringgit."There is no time frame when prices could fall to this low (2,050), but the immediate trend is down," Tam said.

He said the surge in October did not sustain and selling stopped the market from breaching the resistancelevel.