Palm oil may seek support at 4,010 ringgit

SINGAPORE: Palm oil may seek a support at 4,010 ringgit per tonne and resume its rise thereafter.

The first part of the uptrend from the June 1 low of 3,852 ringgit is over. The contract is retreating towards a rising trendline, which establishes a support around 4,010 ringgit as well.

A break below 4,010 ringgit, which is less likely, may trigger a fall limited to 3,888 ringgit. On the daily chart, the current fall could be a part of a high-low bottom, which is a repeating pattern when the uptrend resumes.

History never repeats, but pattern does. A new high-low bottom could be developing before the uptrend resumes within a rising channel.

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