Palm oil may rise into 3,348-3,381 ringgit range
- A hammer forming on Tuesday, signaling the completion of the drop triggered by the resistance at 3,290 ringgit. The contract is poised to break this resistance and rise towards 3,431 ringgit.
SINGAPORE: Palm oil may break a resistance at 3,300 ringgit per tonne, and rise into a zone of 3,348-3,381 ringgit.
The zone is formed by the 176.4% and the 186.4% projection levels of an uptrend from 2,746 ringgit. The fall from the Jan. 6 high of 3,888 ringgit has completed, as indicated by its five-wave structure and the bounce from around a support 3,173 ringgit.
The bounce is expected to extend towards the peak of a wave 4 around 3,348 ringgit. A retracement analysis on the fall reveals a target zone of 3,332-3,438 ringgit, which engulfs the 3,348 ringgit level.
A break below 3,221 ringgit could cause a fall into 3,143-3,173 ringgit range. 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.
A hammer forming on Tuesday, signaling the completion of the drop triggered by the resistance at 3,290 ringgit. The contract is poised to break this resistance and rise towards 3,431 ringgit.
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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