SINGAPORE: Palm oil faces a resistance of 3,801 ringgit per tonne, it may hover below this level or retrace towards a range of 3,624-3,673 ringgit. The rally from the Jan. 20 low of 3,160 ringgit could be broken down into five waves. This structure indicates that the correction from the March 1 high of 3,819 ringgit may take a longer time to complete.
The correction could have adopted a flat pattern, which consists of three waves that are roughly equal. 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 correction from the Jan. 6 high of 3,888 ringgit will not be considered complete as long as the contract remains below this level.
The correction may take the shape of a big flat, which consists of three waves. The second wave, the wave b is expected to end around 3,856 ringgit, to be reversed by a downward wave c. Charts are not available in reports received in email box through “Alert”. To get charts, use the news code of to retrieve the original reports.
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