Palm oil may fall into 3,592-3,631 ringgit range
- On the daily chart, the drop triggered by the key resistance at 3,856 ringgit looks so decent that it suggests a completion the wave C from 2,691 ringgit.
SINGAPORE: Palm oil may fall into a range of 3,592 to 3,631 ringgit per tonne, as the correction from the Jan. 6 high of 3,888 ringgit looks sharp and strong.
The purpose of the correction could be to cover a gap forming between Dec. 31, 2020 and Jan. 4. A more bearish scenario indicates the completion of a five-wave cycle from the Oct. 2, 2020 low of 2,691 ringgit.
Under this scenario, the correction could be towards the bottom of the wave 4 around 3,200 ringgit. Resistance is at 3,757 ringgit, a break above which could lead to a gain to 3,835 ringgit.
On the daily chart, the drop triggered by the key resistance at 3,856 ringgit looks so decent that it suggests a completion the wave C from 2,691 ringgit.
Unless the contract could stabilize around 3,698 ringgit and resume its rise twoards 3,856 ringgit, a further fall towards 3,411-3,581 ringgit range will be highly likely.
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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