SINGAPORE: Palm oil may revisit its Tuesday low of 5,202 ringgit per tonne, as a correction triggered by the resistance at 5,366 ringgit looks incomplete.
The correction does not seems to be a pullback towards the previous high of 5,220 ringgit.
Instead, it could be deep drop against a five-wave cycle from 4,294 ringgit.
The correction could be extending towards the bottom of the wave 4 around 4,923 ringgit. There is still a big room for the coming drops.
Palm oil prices pause after rally to record high
Resistance is at 5,292 ringgit, a break above which could lead to a gain to 5,366 ringgit.
On the daily chart, the bearish divergence on the daily RSI strongly suggests an exhaustion of the uptrend.
A deep correction could be around the corner.
There are exceptions, however, that the trend is exceptionally strong to make the divergence ineffective.
A break above 5,350 ringgit could open the way towards 5,473-5,641 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.