Palm oil may drop into 3,959-4,008 ringgit range
- Signals on the chart of the June contract also suggest a drop, as confiremd by the bearish divergence on the hourly RSI and an exhaustion gap forming on March 12.
SINGAPORE: Palm oil may drop into a range of 3,959-4,008 ringgit to 4,048 ringgit per tonne, as it has left a rising channel.
The big gap forming on Tuesday was due to the spread between the May and the June contracts.
Technically, the gap has a strong bearish indication that the uptrend from 3,598 ringgit has reversed.
The current correction could be similar to the one from the March 1 high of 3,819 ringgit, to extend towards 3,959 ringgit.
Signals on the chart of the June contract also suggest a drop, as confiremd by the bearish divergence on the hourly RSI and an exhaustion gap forming on March 12.
The drop is regarded as a pullback towards the Jan. 6 high of 3,884 ringgit on the daily chart. This pullback may end around 3,938 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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