Palm oil may test support at 3,597 ringgit
- The pullback is assumed to be a part of a high-low bottom.
SINGAPORE: Palm oil may test a support at 3,597 ringgit per tonne, a break below which could cause a fall to 3,544 ringgit.
The current fall is well controlled by a set of retracements on the uptrend from 3,495 ringgit to 4,192 ringgit.
Given that the contract has cleared the support 3,659 ringgit, it is expected to drop into a zone of 3,544-3,597 ringgit.
Resistance is at 3,707 ringgit, a break above which could lead to a gain to 3,761 ringgit.
On the daily chart, the contract is pulling back towards a rising trendline again.
The pullback is assumed to be a part of a high-low bottom.
Based on this assumption, the pullback may end above 3,495 ringgit.
However, market is always full of surprises. A break below 3,495 ringgit could signal a reversal of the uptrend from the May 6, 2020 low of 1,939 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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