Palm oil still targets 3,261-3,300 ringgit range
- On the daily chart, the contract may fall towards 3,274 ringgit, as it failed to break a resistance at 3,411 ringgit, the 50% projection level of a presumed wave C from 2,691 ringgit.
SINGAPORE: Palm oil still targets a range of 3,261 ringgit to 3,300 ringgit per tonne, as suggested by the hourly MACD and a projection analysis.
The bearish divergence on the hourly MACD confirms a dissipation of the bullish momentum. This is due to the completion of a five-wave cycle from the Oct. 5 low of 2,691 ringgit.
The contract may drop towards the bottom of the wave 4 around 3,221 ringgit, the 138.2% projection level on an uptrend from 2,764 ringgit.
Strategically, the target zone will be confirmed when the contract breaks the nearest support at 3,348 ringgit. Resistance is at 3,381 ringgit, a break above which may lead to a gain to 3,426 ringgit.
On the daily chart, the contract may fall towards 3,274 ringgit, as it failed to break a resistance at 3,411 ringgit, the 50% projection level of a presumed wave C from 2,691 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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