Palm oil may support at 3,761 ringgit
- Both of them are bearish reversal patterns. When working together, they are more reliable. The historical high-low bottom pattern may be repeating.
SINGAPORE: Palm oil may test a support at 3,761 ringgit per tonne, a break below which could cause a fall to 3,659 ringgit.
The contract briefly approached a strong resistance at 3,926 ringgit and then quickly dropped below a support at 3,844 ringgit.
This hit-and-run move signals a dissipation of the bullish momentum. The bounce from 3,495 ringgit may have completed. Over the next few days, the contract may retreat towards 3,495-3,659 ringgit range.
A break above 3,844 ringgit may lead to a gain limited to 3,926 ringgit. On the daily chart, a shooting star formed on Thursday, after the hanging man on Wednesday.
Both of them are bearish reversal patterns. When working together, they are more reliable. The historical high-low bottom pattern may be repeating.
Under this assumption, palm oil may retreat towards the rising trendline again.
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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