Palm oil may rise to 4,369 ringgit
- This fall looks like a pullback towards the March 15 high of 4,192 ringgit, around which, the contract is stabilizing, as suggested by the doji forming on Monday.
SINGAPORE: Palm oil may rise to 4,369 ringgit per tonne, as it has stabilized around a support at 4,195 ringgit.
The big drop on Monday was due to a contract switch on the continuous chart. Even though this is not a natural price move, it still closely observed a set of retracements.
The drop could have been driven by a wave (4), which will be reversed by an upward wave (5).
That means the big gap forming on Monday will be eventually covered.
A break below 4,195 ringgit may cause a fall to 4,117 ringgit. On the daily chart, the fall was triggered by a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
This fall looks like a pullback towards the March 15 high of 4,192 ringgit, around which, the contract is stabilizing, as suggested by the doji forming on Monday.
A further drop may end around 4,131 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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