Palm oil may fall to 4,125 ringgit
- The contract is riding on a wave c from 4,530 ringgit, the third wave of an irregular flat that developed from the July 30 high of 4,498 ringgit
SINGAPORE: Palm oil may drop to 4,125 ringgit per tonne and stabilise around this level thereafter.
The contract is riding on a wave c from 4,530 ringgit, the third wave of an irregular flat that developed from the July 30 high of 4,498 ringgit.
A projection analysis reveals a strong support at 4,125 ringgit, the 100% level, around which the wave c may pause. A break below 4,125 ringgit may cause a fall to 4,066 ringgit.
Resistance is at 4,280 ringgit, a break above which could lead to a gain into a range of 4,328-4,375 ringgit. On the daily chart, the contract has deeply pierced below a support at 4,239 ringgit.
Palm oil is highly likely to break 4,239 ringgit and fall to 4,116 ringgit, as its move on Monday could be impacted by the deep drop of CBOT grains on Aug. 20.
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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