Palm oil faces resistance at 4,948 ringgit

SINGAPORE: Palm oil faces a resistance at 4,948 ringgit per tonne, a break above could lead to a gain into the 4,994-5,069 ringgit range.

The resistance happens to be near the peak of a wave B. Such a coincidence increases the chance of a correction towards 4,873 ringgit. However, the current strong bullish momentum simply decreases such a chance.

Encouraged by the strong gains in overnight US grain market, the contract is biased to open above 4,948 ringgit on Wednesday.

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