Palm oil may retreat into 4,155-$4,251 ringgit range
- The resistance is strengthened by a similar one established by a falling trendline
SINGAPORE: Palm oil may retreat into a range of 4,155 ringgit to $4,251 ringgit per tonne, following its failure to break a resistance at 4,358 ringgit.
The resistance is strengthened by a similar one established by a falling trendline.
The failure to break the line suggests a completion of the bounce from the Sept. 2 low of 4,150 ringgit and a resumption of the downtrend from 4,560 ringgit.
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A break above 4,358 ringgit could lead to a gain into 4,405 ringgit to 4,464 ringgit range. On the daily chart, the uptrend from the June 18 low of 3,251 ringgit may have reversed, as a trendline rising from this level has been broken.
A head-and-shoulders is still developing, which looks a bit unsymmetrical, as there could be two right shoulders. Still, this pattern has a strong bearish indication that the contract may drop to 3,790 ringgit.
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