SINGAPORE: Palm oil may test a resistance at 4,873 ringgit per tonne, a break above which could lead to a gain to 4,948 ringgit.
The contract managed to stabilize around a support at 4,751 ringgit. The stabilisation increases the chance of a rise into 4,873-4,948 ringgit range.
Support is at 4,751 ringgit, a break below which could confirm the continuation of the fall from the Dec. 8 high of 4,949 ringgit towards 4,555 ringgit, as pointed by a falling channel.
On the daily chart, the contract temporarily stays within the upper channel. It is at a crossroads.
A break below 4,698 ringgit will not only cause a fall to 4,587 ringgit, but also confirm a price zone defined by the lower channel.
It might be possible that the downtrend develops towards 3,936 ringgit if palm oil remains within the low channel for a few days.
A break above 4,878 ringgit will basically wipe out this possibility.
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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