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Crude Palm Oil Futures Poised to Reach RM4,800 Per Ton Amidst Strong Buying Momentum
🇲🇾 Malaysia /Economy & Trade

Crude Palm Oil Futures Poised to Reach RM4,800 Per Ton Amidst Strong Buying Momentum

From Utusan Malaysia · (35m ago) Malay Positive tone

Translated from Malay, summarized and contextualized by DistantNews.

TLDR

  • Crude palm oil futures (FCPO) are expected to continue their upward momentum, potentially reaching RM4,800 per ton due to strengthening market buying activity.
  • The commodity saw a RM42 increase in Wednesday's trading session, closing at RM4,578 per ton, indicating a recovery in buying interest after previous selling pressure.
  • Analysts suggest that the formation of a bullish candlestick pattern and a rising Relative Strength Index (RSI) signal a positive market sentiment and momentum favoring price increases in the near term.

The Malaysian crude palm oil (MSM) market is showing strong signs of recovery, with analysts predicting a potential surge to RM4,800 per ton. This optimistic outlook is supported by technical indicators and renewed buying interest, suggesting a positive sentiment among traders.

FCPO dibuka lebih rendah pada RM4,527 sebelum susut ke paras terendah intrahari RM4,491, namun kembali meningkat untuk mencecah paras tertinggi RM4,583 sebelum ditutup kukuh.

— Aiman Kamil Ahmad ShauqiRHB Research analyst Aiman Kamil Ahmad Shauqi described the trading day's price movements.

The FCPO contract has demonstrated resilience, bouncing back from earlier lows to close significantly higher. This upward momentum is further bolstered by the formation of a bullish candlestick pattern and a rising Relative Strength Index (RSI), both indicating a favorable market trend.

Pembentukan corak lilin menaik dalam carta harian memberi isyarat jelas bahawa sentimen pasaran kembali positif.

— Aiman Kamil Ahmad ShauqiRHB Research analyst Aiman Kamil Ahmad Shauqi commented on the technical indicators suggesting a positive market sentiment.

RHB Research maintains a 'buy' recommendation for FCPO, anticipating a test of the RM4,680 resistance level and a subsequent push towards the RM4,800 mark. However, this positive forecast hinges on the price remaining above the crucial RM4,400 support level, a breach of which could signal a shift in market direction.

Penunjuk Indeks Kekuatan Relatif (RSI) yang kembali bergerak ke atas turut menunjukkan momentum kini kembali menyebelahi pedagang yang menjangkakan kenaikan harga dalam tempoh terdekat.

— Aiman Kamil Ahmad ShauqiRHB Research analyst Aiman Kamil Ahmad Shauqi noted the upward movement of the RSI indicating favorable momentum for traders.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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