Palm oil to bounce more to 4,132 ringgit
- The trend may have resumed. It is observed that the resumption has been quite often accompanied by a high-low bottom.
SINGAPORE: Palm oil is expected to bounce more to 4,132 ringgit per tonne, as it has pierced above a resistance at 4,010 ringgit.
The next resistance will be at 4,132 ringgit, which is indicated by a falling channel as a target. The current bounce may be as strong as the one from the May 17 low of 4,203 ringgit.
Support is at 3,950 ringgit, a break below which could be followed by a shallow drop to 3,888 ringgit.
On the daily chart, the uptrend remains intact within a rising channel.
The trend may have resumed. It is observed that the resumption has been quite often accompanied by a high-low bottom.
This pattern may repeat. The current predication is the contract may bounce to 4,131 ringgit first and then retreat towards the lower channel line again.
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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