Crude Palm Oil - Price at Support

The price of FCPO went into a bullish rally for one month in the mid-July to mid-August. The price climbed RM525 per metric ton or 26% from a low of RM1,990 to a high of RM2,515. The price then went into a correction, goes to a low of RM2,234 before settling at RM2,366 at the end of the month. The RM2,234 low was a 50% retracement from the one month bullish rally and the 30-day moving average line.

Technically, the price is still in a long term up trend but in a correction. The 90-day moving average is still increasing but the shorter averages are mixed. In the last one week of the month, market was uncertain as it traded in a tight trading range. The price of FCPO is currently slightly above the long term 15- and 30- week moving averages. A new up trend line is developed and is currently at RM2,300 and increasing.

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