- The rise from the June 18 low of 3,251 ringgit looks quite sharp. The current fall could be similarly sharp as well
SINGAPORE: Palm oil may consolidate in a narrow range of 4,105-4,197 ringgit per tonne for one or two days before falling again.
A small double-top forming around 4,498 ringgit suggests a target around 4,012 ringgit. The pattern also indicates the reversal of an uptrend from the June low of 3,251 ringgit.
The expected consolidation could be roughly mirroring the sideways move between July 15 and July 22.
A break above 4,197 ringgit may lead to a gain to 4,312 ringgit.
On the daily chart, a projection analysis on the uptrend from 1,939 ringgit reveals a support at 4,116 ringgit, which works together with the one at 4,105 ringgit on the hourly chart to temporarily stop the fall.
The rise from the June 18 low of 3,251 ringgit looks quite sharp. The current fall could be similarly sharp as well.
As a result, bulls are advised not to take much fancy to the following bounce.
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