Palm oil may hover below 4,312 ringgit
- On the daily chart, the depth of the drop from the July 30 high of 4,498 ringgit suggests a reversal of the uptrend from the June 18 low of 3,251 ringgit
SINGAPORE: Palm oil faces a resistance at 4,312 ringgit per tonne, it may hover below this level or retreat towards 4,197 ringgit.
The strong bounce triggered by the support at 4,105 ringgit is assumed to be a pullback towards a double-top forming around 4,498 ringgit.
Under this assumption, the downtrend may resume towards 4,105 ringgit. A break above 4,312 ringgit could lead to a gain to 4,383 ringgit.
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On the daily chart, the depth of the drop from the July 30 high of 4,498 ringgit suggests a reversal of the uptrend from the June 18 low of 3,251 ringgit.
The drop may consist of three waves. The current wave b may end below the July 30 low of 4,366 ringgit, around which a gap started. This wave is expected to be reversed by a downward wave c.
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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