Palm oil may break resistance at 4,393 ringgit
- It is expected to test the resistance zone of 4,486-4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
SINGAPORE: Palm oil is poised to break a resistance at 4,436 ringgit per tonne and rise into 4,494-4,556 ringgit range.
The contract is riding on a powerful wave (3)-3, which has been disrupted by a shallow correction on May 10. The correction seems to have ended at 4,281 ringgit.
The contract failed twice to break 4,436 ringgit, it may succeed in its current attempt.
A break below 4,281 ringgit could cause a fall into a zone of 4,169-4,231 ringgit.
On the daily chart, the contract has completed a pullback towards a former resistance at 4,301 ringgit.
It is expected to test the resistance zone of 4,486-4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
Either of these levels could work as a strong resistance to trigger a decent correction. When joining hands, they are likely to stop the sharp rally.
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