SINGAPORE: Palm oil may test a support at 3,806 ringgit per tonne, with a good chance of breaking below this level and falling into 3,721-3,762 ringgit range.
The contract failed four times to break a resistance at 4,011 ringgit. The failures, along with the deep slide on Thursday, suggest a continuation of the downtrend from 4,300 ringgit.
The bounce from 3,721 ringgit adopted a three-wave mode. The wave c demonstrates a very exceptional structure which is a bit against the wave principle and guidelines. However, this structure works well to explain the sideways move over the past week.
Indonesia’s 2022 palm oil exports seen at 34.67mn tonnes
A break above 3,905 ringgit could lead to a gain into 3,942-4,011 ringgit range. On the daily chart, the contract closed below a support of 3,891 ringgit on Thursday.
The consolidation above this level and below a resistance at 4,070 ringgit looks convincingly over. The contract may carry on to build the right shoulder of an inverted head-and-shoulders. A slide towards 3,590 ringgit is highly expected.
Comments
Comments are closed.