Palm oil may retreat to 3,503 ringgit
- On the daily chart, a retracement analysis on the uptrend from 2,691 ringgit to 3,888 ringgit reveals a similar resistance at 3,606 ringgit, the 23.6% level.
SINGAPORE: Palm oil may retreat to 3,503 ringgit per tonne, as it faces a strong resistance at 3,584 ringgit.
The resistance is identified as the 61.8% retracement of the downtrend from 3,846 ringgit to 3,160 ringgit.
A break above this barrier could lead to a gain to 3,684 ringgit.
However, the contract failed to close above this level on Tuesday. This indicates a dissipation of the bullish momentum. Palm oil has to drop to 3,503 ringgit first before either sliding more or retesting 3,584 ringgit.
On the daily chart, a retracement analysis on the uptrend from 2,691 ringgit to 3,888 ringgit reveals a similar resistance at 3,606 ringgit, the 23.6% level.
These resistances may work together to stop the rise.
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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