SINGAPORE: Palm oil looks neutral in a range of 4,079-4,176 ringgit a tonne, and an escape could suggest a direction.
The drop from the Nov. 24 high of 4,219 ringgit looks deep enough to indicate a reversal of the short uptrend from the Nov. 21 low of 3,787 ringgit.
However, the strong rise from the Nov. 25 low of 4,020 ringgit complicated the picture, as it is hard to be categorised.
The rise could be an extension of the uptrend, or a simple bounce against the preceding drop.
A break above 4,176 ringgit may confirm an extension of the uptrend towards 4,236-4,333 ringgit range.
Malaysian palm oil futures rise
A break below 4,079 ringgit could open the way towards 3,922-4,019 ringgit range.
Signals on the daily chart suggest an upside bias, as the contract seems to have broken a resistance at 4,070 ringgit.
The break increases the chance of a gain towards 4,331 ringgit.
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