SINGAPORE: Palm oil may fall towards 5,484 ringgit, as it failed to break a resistance at 5,676 ringgit per tonne.
The failure triggered a correction against the uptrend from 5,202 ringgit. A narrow rising channel suggests a further drop towards 5,484 ringgit, around which the uptrend may resume.
A break above 5,676 ringgit could lead to a gain to 5,749 ringgit. On the daily chart, palm oil failed to break a resistance at 5,641 ringgit.
This resistance is strengthened by another one established by a rising trendline. Former resistances provided by the trendline proved to be effective in triggering deep drops.
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Even though it is not very clear if a deep drop is developing, it is possible that the contract may fall to 5,473 ringgit first, which is close to 5,484 ringgit (hourly chart).
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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