Palm oil may extend loss to 3,195 ringgit
- The contract may directly test the resistance zone of 3,447-3,506, if it opens flat. On the daily chart, the drop is against the uptrend from 1,939 ringgit.
SINGAPORE: Palm oil may extend its loss to a support at 3,195 ringgit per tonne, around which it may pause the steep fall and start a bounce.
This key support is identified as the 161.8% projection level of a downward wave C from 4,260 ringgit. It might be the ultimate target for this wave.
The drop on Monday was very deep. The bearish momentum may keep driving the price down. Most likely, the market opens with a gap on Tuesday.
The contract may directly test the resistance zone of 3,447-3,506, if it opens flat. On the daily chart, the drop is against the uptrend from 1,939 ringgit.
A retracement analysis reveals a strong support at 3,232 ringgit, close to 3,195 ringgit (hourly chart).
A rising channel establishes a similar support. Chances are the fall may end around 3,200 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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