Palm oil may retest resistance at 4,501 ringgit
- The correction triggered by the resistance at 4,557 ringgit is taking the shape of a wedge, which looks like a bullish continuation pattern
SINGAPORE: Palm oil may retest a resistance at 4,501 ringgit per tonne, a break above which could lead to a gain into 4,557-4,649 ringgit range.
The correction triggered by the resistance at 4,557 ringgit is taking the shape of a wedge, which looks like a bullish continuation pattern.
Wave pattern indicates the development of a wave 4, which will be reversed by an upward wave 5. The wedge will be confirmed, when palm oil breaks 4,501 ringgit. It will then suggest a target of 4,649 ringgit.
Palm oil may retest resistance at 4,587 ringgit
Support is at 4,409 ringgit, a break below which may cause a fall to 4,317 ringgit. On the daily chart, palm oil is riding on a wave C which is capable of travelling to 4,878 ringgit, based on the depth of the correction from the July 30 high of 4,498 ringgit.
A break below 4,407 ringgit could cause a fall into 4,239-4,321 ringgit range, which engulfs 4,317 ringgit (hourly chart).
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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