SINGAPORE: Palm oil is poised to break a trendline and revisit its Nov. 21 low of 3,787 ringgit a tonne. The brief bounce triggered by the trendline has been almost reversed. The reversal confirms a continuation of the downtrend from 4,300 ringgit.
The trend is riding on a wave c, the third wave of a three-wave cycle from 4,497 ringgit.
This wave is capable of travelling into 3,590-3,861 ringgit range.
An extension of the bounce could be limited to a resistance zone of 4,029-4,058 ringgit.
On the daily chart, the consolidation within a narrow range of 3,891-4,070 ringgit is ending, following the appearance of a black candlestick on Monday.
The right shoulder of an inverted head-and-shoulders is extending towards a range of 3,522-3,647 ringgit, assuming that these shoulders are roughly symmetrical.
Palm oil may drop into 3,837-3,891 ringgit range
A break above 4,070 ringgit may lead to a gain into 4,331 ringgit.
Comments
Comments are closed for this article.