Palm oil may retest resistance at 3,474 ringgit
- This move suggests that the bulls have not given up breaking 3,411 ringgit. Indeed, this resistance looks vulnerable under the third attacks by bulls. It may be broken on either Friday or next Monday.
SINGAPORE: Palm oil may retest a resistance at 3,474 ringgit per tonne, a break above could lead to a gain into 3,504-3,552 ringgit range.
The moderate gain on Thursday signals a continuation of the uptrend from the Oct. 5 low of 2,691 ringgit. As long as palm oil hovers above a pivotal support at 3,348 ringgit, it may climb into the target zone.
A break below 3,348 ringgit could cause a drop into the range of 3,221 to 3,300 ringgit. On the daily chart, the contract pierced above a resistance at 3,411 ringgit again, which is identified as the 61.8% projection level of a wave C from 2,691 ringgit.
This move suggests that the bulls have not given up breaking 3,411 ringgit. Indeed, this resistance looks vulnerable under the third attacks by bulls. It may be broken on either Friday or next Monday.
The break will open the way towards 3,581-3,856 ringgit range.
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