SINGAPORE: Palm oil may fall into a range of 4,625-4,676 ringgit per tonne, as a downtrend from 5,220 ringgit could have resumed.
The resumption has been confirmed by the drop on Thursday. The trend is extending within a falling channel, which suggests a target of 4,555 ringgit.
A double zigzag is presumed to be developing. It consists of seven waves. The fifth wave labelled a is driving the price down.
Resistance is at 4,812 ringgit, a break above which could lead to a gain into 4,873-4,948 ringgit.
On the daily chart, the uptrend looks unsteady within the upper channel.
The drop on Thursday could be regarded as a pullback towards the channel, only if palm oil could stabilize above 4,698 ringgit.
Signals on the hourly chart suggest a break below 4,698 ringgit.
An aggressive target of 3,936 ringgit could be established once the contract falls into 4,587-4,698 ringgit range.
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.
Comments
Comments are closed for this article.