Palm oil may fall into 4,096-4,155 ringgit range

SINGAPORE: Palm oil may fall into a range of 4,096 ringgit to 4,155 ringgit per tonne, driven by a wave c.

The drop on Monday confirmed an extension of a wave (c) from 4,560 ringgit.

Three smaller waves make up the wave (c).

Palm oil may fall into 4,096-4,155 ringgit range

The third wave, the wave c, is travelling towards the target zone.

The wave (c) is regarded as a part of an irregular flat from 4,498 ringgit. It may progress into a range of 3,905 ringgit to 4,000 ringgit. The falls in US grains this week will have a strong impact on the performance of palm oil as well.

Resistance is at 4,310 ringgit, a break above could lead to a gain into 4,358-4,405 ringgit range.

On the daily chart, the rise from 4,160 ringgit turned out to be a pullback towards a rising trendline.

This latest reading suggests a reversal of the uptrend from the June 18 low of 3,251 ringgit.

The pattern from the July 27 high of 4,480 ringgit looks like a bearish head-and-shoulders, which will be confirmed when the contract breaks 4,116 ringgit.

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