Palm oil signals mixed
- However, a spinning top forming on May 28 around 4,026 ringgit suggests a possible shallow fall towards 3,938 ringgit.
SINGAPORE: Signals are mixed for palm oil , as it is consolidating around a resistance at 4,010 ringgit per tonne.
Even though the contract managed to close above this barrier on May 28, its sideways move thereafter makes a further gain towards 4,132 ringgit doubtful.
This target will only be confirmed when the contract breaks 4,061 ringgit.
A drop below 3,988 ringgit could indicate a continuation of the downtrend towards 3,888 ringgit, as the trend has been mostly developing within a falling channel.
On the daily chart, the uptrend remains intact within a rising channel.
However, a spinning top forming on May 28 around 4,026 ringgit suggests a possible shallow fall towards 3,938 ringgit.
This fall will contribute to the formation of a solid bottom around the lower channel line. The pattern would play a key role in ensuring the following strong rally.
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.
Comments
Comments are closed.