Palm oil may rise to 5,094 ringgit and then reverse
- A drop to 4,685 ringgit could suggest the break above 5,001 ringgit was false
SINGAPORE: Palm oil may rise to 5,094 ringgit per tonne, as it has cleared a resistance at 5,001 ringgit.
The next resistance will be 5,094 ringgit, a break above which could lead to a gain to 5,155 ringgit.
The fall from the Thursday high of 5,053 ringgit has been almost reversed.
The reversal signals the progress of a wave 5, the fifth wave of a five-wave cycle from 4,672 ringgit.
A drop to 4,685 ringgit could suggest the break above 5,001 ringgit was false.
A bearish target zone of 4,865-4,924 ringgit will be established accordingly.
On the daily chart, the contract faces a resistance at 5,082 ringgit, which is strengthened by two other ones, respectively at 5,069 ringgit, the Jan. 19, 2021 high and 5,086 ringgit, the Nov. 3, 2021 high.
A break above 5,082 ringgit could lead to a gain to 5,220 ringgit. However, it is not going to be an easy task. Most likely, the contract will fail to overcome this barrier in its first attempt.
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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