Palm oil may fall to 4,273 ringgit
- On the daily chart, the contract reapproached a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
SINGAPORE: Palm oil may break a support at 4,369 ringgit per tonne, and fall to 4,273 ringgit.
The rise on Tuesday could be too sharp to sustain. It is subject to a correction. It is not very clear how the contract opens on Wednesday.
Most likely, it could open low and drop or open high and close low.
A break above 4,525 ringgit may not trigger an impressive gains, instead, the gains could be limited to a resistance at 4,556 ringgit.
On the daily chart, the contract reapproached a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
The zone may trigger the second correction which is expected to be shallower than the one from the May 12 high of 4,525 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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