Palm oil may test resistance at 3,752 ringgit
- Support is at 3,624 ringgit, a break below which could cause a fall into the 3,466-3,545 ringgit range. On the daily chart, the contract may break a resistance at 3,581 ringgit, following its failure on Feb. 15.
SINGAPORE: Palm oil may test a resistance at 3,752 ringgit per tonne, a break above which could lead to a gain to 3,834 ringgit.
The drop from the Feb. 15 high of 3,720 ringgit has been almost reversed. The reversal signals a continuation of the uptrend from 3,210 ringgit.
The trend may have been driven by a wave B, the second wave of a presumed flat developing from the Jan. 6 high of 3,888 ringgit.
This flat pattern suggests that palm oil may revisit the high of 3,888 ringgit. A more bullish scenario will be that the uptrend from 2,691 ringgit has resumed.
Support is at 3,624 ringgit, a break below which could cause a fall into the 3,466-3,545 ringgit range. On the daily chart, the contract may break a resistance at 3,581 ringgit, following its failure on Feb. 15.
A break could lead to a gain to 3,856 ringgit, while a break below 3,581 ringgit could cause a fall to 3,411 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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