Palm oil may rise into 4,405-4,464 ringgit range

SINGAPORE: Palm oil may break a resistance at 4,358 ringgit per tonne and rise into a range of 4,405-4,464 ringgit.

The peak of a wave b was shifted to 4,560 ringgit, the Aug. 12 high, from the previous Aug. 17 high of 4,530 ringgit.

A projection analysis works much better after this shift.

It reveals a key support at 4,155 ringgit, around which, the wave c ended.

This wave is regarded as a part of the correction from the July 30 high of 4,498 ringgit. The correction was thought to develop into an irregular flat pattern, which turned out to be a common one.

The strong rise from the Monday low of $4,160 ringgit is temporarily classified as a continuation of the preceding uptrend form 3,251 ringgit.

Support is at 4,251 ringgit, a break below which could cause a fal into 4,096-4,155 ringgit range. On the daily chart, the big candlestick on Monday indicates a further gain on Tuesday.

Most likely, the contract would rise into 4,407-4,493 ringgit range.

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