Palm oil may rise into 3,348-3,381 ringgit range
- Support is at 3,261 ringgit, a break below which may cause a fall into 3,173-3,221 ringgit range.
SINGAPORE: Palm oil may rise to a range of 3,348-3,381 ringgit per tonne, as the fall from the Jan. 6 high of 3,888 ringgit has completed.
The completion was indicated by the five-wave structure of the fall, and the bounce from around a support 3,173 ringgit. This bounce is expected to at least extend to 3,348 ringgit, near the peak of a wave 4.
Support is at 3,261 ringgit, a break below which may cause a fall into 3,173-3,221 ringgit range.
On the daily chart, a retracement analysis on the uptrend from 2,691 ringgit to 3,888 ringgit reveals a key support at 3,148 ringgit, the 61.8% level.
The hammer forming on Wednesday and the white candlestick on Thursday above this support make a perfect bullish reversal signal. The downtrend from 3,888 ringgit will be further reversed.
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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