Palm oil may test resistance at 3,834 ringgit
- Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
SINGAPORE: Palm oil may test a resistance at 3,834 ringgit per tonne, a break above which could lead to a gain to 3,888 ringgit.
The pattern from the Jan. 6 high of 3,888 ringgit looks like a big flat, which consists of three waves that are roughly equal in length.
The current wave B could travel to around 3,888 ringgit, where the wave A started. This wave B will be reversed by a downward wave C.
Besides this bearish scenario, there is a bullish one that the uptrend from 2,691 ringgit has resumed. Under this assumption, the contract would surge far above 3,888 ringgit.
Support is at 3,752 ringgit, a break below which could cause a fall into the 3,624-3,673 ringgit range. On the daily chart, the contract has broken a resistance at 3,581 ringgit.
The break opened the way towards 3,856 ringgit. Given that palm oil started a deep correction when it briefly pierced above this level on Jan. 6, it may experience a much shallower correction when it rises to 3,856 ringgit.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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