- The resistance is strengthened by a similar one established by a falling trendline
SINGAPORE: Palm oil may fall into a range of 3,602 ringgit to 3,691 ringgit per tonne, as it faces a resistance at 3,853 ringgit.
The resistance is strengthened by a similar one established by a falling trendline.
Together, these resistances may stop the rise and cause a decent correction.
A small five-wave cycle from 3,395 ringgit is expected to complete around these two resistances as well. The completion makes a good correct more likely.
A break above 3,853 ringgit could lead to a gain into 3,931-4,009 ringgit range.
On the daily chart, the current rise is defined as a pullback towards a rising trendline. The pullback may end below 3,915 ringgit.
The downtrend from 4,525 ringgit may resume thereafter.
For an in-depth analysis on the medium-term trend, see A break above 3,915 ringgit could signal the continuation of the uptrend.
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