Palm oil may fall into 3,602-3,691 ringgit range

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.

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.