Palm oil may test resistance at 3,926 ringgit
- The answer could be with the support at 3,761 ringgit, a break below which will confirm the pattern.
SINGAPORE: Palm oil may test a resistance at 3,926 ringgit per tonne, a break above which could lead to a gain to 4,028 ringgit.
The contract has cleared a resistance at 3,844 ringgit, the 50% retracement of the downtrend from 4,192 ringgit to 3,495 ringgit.
It is rising towards the next resistance at 3,926 ringgit.
A drop below 3,799 ringgit could signal the break above 3,844 ringgit was false. The contract may fall towards 3,659 ringgit.
Signals are mixed on the daily chart, as a hanging man formed on Wednesday, which makes a break above 3,844 ringgit doubtful.
It has been observed that the resumption of the uptrend was often accompanied by high-low bottom after a deep correction.
Will this pattern repeat?
The answer could be with the support at 3,761 ringgit, a break below which will confirm the pattern.
As long as the contract hovers above 3,844 ringgit, it is likely to climb towards the range of 3,926-4,028 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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