Palm oil may hover below 3,810 ringgit
- On the daily chart, an uptrend remains intact. However, the resumption of the uptrend quite often started with a high-low bottom after a deep correction.
SINGAPORE: Palm oil failed to break a resistance at 3,810 ringgit per tonne. It may hover below this level or retreat into a zone of 3,687-3,749 ringgit.
This resistance may trigger the second pullback towards a falling trendline. Working together with this resistance is another one at 3,798 ringgit, the 38.2% retracement on the uptrend from 3,160 ringgit to 4,192 ringgit.
Together, these barriers may stop the rise and force the contract to fall.
A break above 3,810 ringgit could lead to a gain to 3,887 ringgit.
On the daily chart, an uptrend remains intact. However, the resumption of the uptrend quite often started with a high-low bottom after a deep correction.
Such pattern appeared in October 2020 and January. It may repeat while market is recovering from the March 31 low of 3,495 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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