SINGAPORE: Palm oil may break a support at 4,751 ringgit per tonne, and fall into 4,625-4,676 ringgit range.
The congestion area between 4,751 ringgit and 4,812 ringgit looks like a continuation pattern, to be followed by a round of drop.
A falling channel remains intact, increasing the chance of a fall towards 4,555 ringgit.
A break above 4,812 ringgit could lead to a gain to 4,873 ringgit.
Only a further gain could signal the continuation of the uptrend from Dec. 2 low of 4,567 ringgit.
On the daily chart, the contract is consolidating around a key support at 4,698 ringgit.
Whether it could stay within the upper channel remains unknown.
A break below 4,698 ringgit will not only cause a fall to 4,587 ringgit, but also confirm a price zone defined by the lower channel. A break above 4,878 ringgit could indicate the continuation of the uptrend.
Signals on the hourly chart suggests a downside bias.
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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