Palm oil may rise into 3,348-3,381 ringgit range
- This bounce is expected to extend towards the peak of a wave 4 around 3,348 ringgit.
SINGAPORE: Palm oil may break a resistance at 3,300 ringgit per tonne and rise to a range of 3,348-3,381 ringgit, 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 extend towards the peak of a wave 4 around 3,348 ringgit.
The upside, however, may not be limited to the target zone.
A retracement analysis on the fall from 3,388 ringgit to 3,160 ringgit suggests a higher target range of 3,438-3,524 ringgit.
Support is at 3,261 ringgit, a break below which may cause a fall to 3,221 ringgit. On the daily chart, the contract stabilized around a support at 3,148 ringgit, the 61.8% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.
The hammer on Jan. 20 and the following two white candlesticks form a convincing bullish reversal signal.
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.
Comments
Comments are closed for this article.