Palm oil may test resistance at 4,405 ringgit
- The trend is expected to extend above 4,560 ringgit
SINGAPORE: Palm oil may test a resistance at 4,405 ringgit per tonne, a break above which could lead to a gain into a range of 4,464-4,560 ringgit.
The current rise is regarded as a continuation of the uptrend from 3,251 ringgit, as the correction from the July 30 high of 4,498 ringgit was shaped into a flat, which is a bullish continuation pattern.
The trend is expected to extend above 4,560 ringgit. Support is at 4,310 ringgit, a break below which could cause a fall into 4,155-4,251 ringgit.
On the daily chart, signals remain bullish. Following a harami cross, a white candlestick formed on Wednesday, ensuring a further gain on Thursday.
A projection analysis suggests a target range of 4,407-4,493 ringgit range.
A failure to break 4,407 ringgit would indicate that the rise from 4,160 ringgit could indeed be a pullback towards a rising trendline.
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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