Palm oil biased to fall to 2,984 ringgit/T
SINGAPORE: Malaysian palm oil is biased to fall to 2,984 ringgit per tonne, as it could have completed a rebound that started at the Aug 9 low of 2,917 ringgit.
The rebound has been bouncing up and down in a rising wedge, which narrows to a price band of 2,984-3,083 ringgit, as pointed by the two trendlines.
The pattern is generally bearish, following the development of a downtrend. The failure of the contract to break above 3,083 ringgit has significantly increased the chance for the lower trendline support at 2,983 ringgit to be broken.
No information in this analysis should be considered as being business, financial or legal advice. 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.
Copyright Reuters, 2011
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