Palm oil may test support at 5,002 ringgit

SINGAPORE: Palm oil may test a support at 5,002 ringgit per tonne, a break below which could open the way to 4,927 ringgit.

A five-wave cycle from 4,294 ringgit is ending around a resistance 5,094 ringgit.

A deep correction is expected to partially reverse the cycle, unless the contract unexpectedly climbs above 5,123 ringgit.

A drop below 5,032 ringgit could be the very early signal of a trend reversal, while a break above 5,123 ringgit may lead to a gain to 5,220 ringgit.

Palm oil may test support at 4,927 ringgit

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 Nov. 19, 2021 high, and 5,086 ringgit, the Nov. 3, 2021 high.

The risk of a drop towards 4,993 ringgit is amounting, as the contract has been unable to overcome this barrier after a few attempts. The rise from 4,236 ringgit also looks too linear to sustain.

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.