Breaking News

OPEC Decides to Keep Oil Production Unchanged: Delegate
Tweet TWEET

Palm to Test 1,950 Ringgit in Bearish Trend: Technical Analysis

Palm oil will probably plunge 16 percent in the next three months to test 1,950 ringgit ($638) a metric ton, the cheapest price in more than three years, according to technical analysis by Trading Central SA.

The contract for March delivery “is still in a bearish trend as it remains under pressure below both the 20-day and 50- day simple moving averages,” said Jeffrey Zhang, Hong Kong- based head of Asia research. The averages “are heading downwards and should continue to push the price lower,” he said in an e-mail today.

Palm tumbled 27 percent this year as output in Indonesia and Malaysia, the biggest producers, outpaced demand from China and India. The most-active contract on the Malaysia Derivatives Exchange slumped to 2,217 ringgit on Dec. 13, the lowest level since November 2009, and was at 2,314 by 3:32 p.m. Kuala Lumpur time. Futures last traded below 1,950 ringgit in March 2009.

The 20-day moving average was about 2,375.60 ringgit and the 50-day average about 2,473.76 today. In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.

To contact the reporter on this story: Supunnabul Suwannakij in Bangkok at ssuwannakij@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.