Palm oil may test support at 3,738 ringgit
- A break could trigger a deep drop. A duplicated channel indicates an aggressive target around 3,400 ringgit.
SINGAPORE: Palm oil may test a support at 3,738 ringgit per tonne, a break below could open the way towards the range of 3,495 ringgit to 3,635 ringgit.
The contract eventually broke a rising trendline and a support at 3,738 ringgit. The break signals a continuation of the downtrend from 4,525 ringgit.
The trend could be extending towards the bottom of a presumed wave B around 3,635 ringgit. These bearish targets will be aborted if the contract opens above 3,888 ringgit on Thursday and stays firm thereafter.
The uptrend from 3,495 ringgit is considered steady. It may extend to 4,525 ringgit. On the daily chart, the big black candlestick on Wednesday menaces the once strong support of 3,856 ringgit.
Signals on the hourly chart suggest a small chance of the support to hold. A break could trigger a deep drop. A duplicated channel indicates an aggressive target around 3,400 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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