Palm oil may test resistance at 3,506 ringgit

SINGAPORE: Palm oil may test a resistance at 3,506 ringgit per tonne, with a good chance of breaking above this level and rising to 3,602 ringgit.

The correction from 4,525 ringgit may have completed, as suggested by the mathematical relation between the wave C and the wave A.

The stabilisation of the price around 3,273 ringgit indicates the formation of a temporary bottom.

A retracement analysis on the downtrend from 4,525 ringgit to 3,251 ringgit marks a target zone of 3,552 ringgit to 3,738 ringgit for the current bounce.

Support is at 3,351 ringgit, a break below which could cause a fall into the 3,195-3,273 ringgit range.

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