Palm oil still targets 3,466-3,545 ringgit range
- A break above 3,698 ringgit could open the way towards 3,856 ringgit.
SINGAPORE: Palm oil still targets a range of 3,466 ringgit to 3,545 ringgit per tonne, as it has completed a rally from the Jan. 20 low of 3,160 ringgit.
The rally was driven by a wave B, the second wave of a big flat developing from the Jan. 6 high of 3,888 ringgit. This wave will be totally reversed by the current wave C.
Five smaller waves make up the wave C. The wave d ended around 3,466 ringgit, which works as a target. The current fall seems to be controlled by a set of projection levels on the uptrend from 3,210 ringgit.
The projection analysis reveals a target zone of 3,466-3,545 ringgit. Resistance is at 3,673 ringgit, a break above which could lead to a gain to 3,752 ringgit.
On the daily chart, a rising wedge has been almost confirmed as a bearish pattern. A confirmation will be when the contract falls below 3,581 ringgit.
A break above 3,698 ringgit could open the way towards 3,856 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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