Palm oil targets 4,464-4,560 ringgit range
- The current rise from the Aug. 23 low of 4,160 ringgit, though very slow and weak
SINGAPORE: Palm oil may break a resistance at 4,405 ringgit per tonne, and climb into a range of 4,464-4,560 ringgit.
The current rise from the Aug. 23 low of 4,160 ringgit, though very slow and weak, is regarded as a continuation of the uptrend from 3,251 ringgit.
The correction from the July 30 high of 4,498 ringgit looks like a flat, which is a bullish continuation pattern. The uptrend is expected to extend above 4,560 ringgit.
Support is at 4,358 ringgit, a break below which could cause a fall into 4,251-4,310 ringgit range. On the daily chart, the contract has recovered a lot from the low of 4,160 ringgit.
As long as the contract stays above 4,321 ringgit, the drop from the Aug. 12 high of 4,560 ringgit is likely to be reversed. A break below 4,321 ringgit will not only open the way towards 4,116-4,239 ringgit range, but also signal an extension of the fall from 4,560 ringgit.
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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