SINGAPORE: Palm oil may test a resistance at 4,358 ringgit per tonne, a break above could lead to a gain into a range of 4,405 ringgit to 4,464 ringgit.
The correction from the July 30 high of 4,498 ringgit took the shape of a flat, which is regarded as a bullish continuation pattern.
The uptrend from the June low of 3,251 ringgit may have resumed.
It is supposed to extend above 4,560 ringgit. Support is at 4,251 ringgit, a break below could cause a fall to 4,096-4,155 range.
On the daily chart, the big candlestick on Monday and the small one on Aug. 20 formed a harami cross, which is a typical bullish reversal pattern, indicating a completion of the fall from the Aug. 12 high of 4,560 ringgit.
Based on a projection analysis, the contract may break 4,321 ringgit and rise into 4,407-4,493 range.
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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