Palm oil may fall more into 3,955-4,021 ringgit range
- The target range has to be temporarily aborted, should the contract open above 4,117 ringgit on Friday and remain above it thereafter.
SINGAPORE: Palm oil may fall more into a range of 3,955-4,021 ringgit per tonne, as suggested by the current strong momentum.
The drop on Thursday confirms the reversal of an uptrend from 3,495 ringgit.
Three waves make up the trend. The second wave labelled B ended at 3,642 ringgit.
In an extreme case, the contract may drop to 3,642 ringgit. A retracement analysis reveals a realistic target of 4,021 ringgit or 3,955 ringgit.
The target range has to be temporarily aborted, should the contract open above 4,117 ringgit on Friday and remain above it thereafter.
On the daily chart, the current correction may roughly match the one from the March 15 high of 4,192 ringgit, to extend into 3,855-3,938 ringgit range, as indicated by a rising channel.
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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