Palm oil may test resistance at 4,010 ringgit
- A break below 3,888 ringgit may not necessarily cause a fall to 3,738 ringgit.
SINGAPORE: Palm oil is expected to stabilize around a support at 3,888 ringgit per tonne and test a resistance at 4,010 ringgit thereafter.
The support is provided by the 61.8% retracement of the uptrend from 3,495 ringgit to 4,525 ringgit.
It is strengthened by another similar one established by a rising trendline.
Together, these supports may stop the fall and trigger a decent bounce.
Increasing the chance of such a bounce is the stabilization of the overnight US grain market.
A break below 3,888 ringgit may not necessarily cause a fall to 3,738 ringgit.
A break above 4,010 ringgit could lead to a gain to 4,132 ringgit.
On the daily chart, a rising channel indicates a completion of the correction around 3,856 ringgit. A further fall could be unlikely.
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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