Palm oil may fall into 3,624-3,673 ringgit range
- The bearish divergence on the hourly RSI suggests an exhaustion of the wave B, which could have peaked around 3,801 ringgit.
SINGAPORE: Palm oil may fall into a range of 3,624-3,673 ringgit per tonne, as it could have completed a bounce from the Jan. 20 low of 3,160 ringgit.
The bounce may have been driven by a wave B, the second wave of a big flat developing from the Jan. 6 high of 3,888 ringgit. This pattern consists of three waves that are roughly equal in length.
The bearish divergence on the hourly RSI suggests an exhaustion of the wave B, which could have peaked around 3,801 ringgit.
The wave C may have just started, unfolding towards the target zone.
A break above 3,801 ringgit could lead to a gain to 3,888 ringgit. On the daily chart, the rise from 3,160 ringgit has been shaped into a rising wedge which is likely to be followed by a deep fall.
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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