Palm oil may fall into 3,495 ringgit to 3,635 ringgit range
- The break below 3,856 ringgit will be considered false, if palm oil manages to close above 3,938 ringgit on Friday.
SINGAPORE: Palm oil may fall into a range of 3,495 ringgit to 3,635 ringgit per tonne, as it has broken a support at 3,888 ringgit per tonne.
The break signals a continuation of the downtrend from 4,525 ringgit, which is extending towards the bottom of a presumed wave B around 3,635 ringgit.
Once the contract drops to 3,635 ringgit, it is highly likely to extend its loss to 3,495 ringgit. A break above 3,888 ringgit, now a resistance, may lead to a gain to 4,010 ringgit.
On the daily chart, there is little doubt that the support at 3,856 ringgit is broken and the contract has moved into the lower channel.
A bearish target of 3,411 ringgit has been established over the next one or two weeks. A realistic target range will be from 3,698-3,774 ringgit.
The break below 3,856 ringgit will be considered false, if palm oil manages to close above 3,938 ringgit on Friday.
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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