The Executive Chairman/ Managing Director of Sime Darby
Plantation Bhd suggested Malaysia Palm Oil (MPO) prices will be in the range of
RM2,250 and RM2,500 per tonne for the second half of 2018 (Read more here).
We analyzed the support and resistance lines for KLCI using
histogram methodology in our previous article (Read
more here). This week, we are
looking at the MPO price using the same methodology.
Chart 1 below shows the volume weighted histogram of weekly
closing price of MPO from July 2011 till September 2018. Clearly from the chart, 2410 is a strong
support/ resistance line. At the time of
this article, MPO was trading at 2213, the immediate strong support based on
the histogram is 2160. There are several
major resistances ahead of 2213, as such, more positive developments are needed
for the MPO to break the 2410 resistance level.
Chart 1:
Volume Weighted MPO Weekly Closing Price Histogram
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