SINGAPORE: Palm oil may test a support at 5,174 ringgit per tonne, a break below which could open the way towards 5,106 ringgit.
Market sentiment swung dramatically on Monday around a resistance at 5,366 ringgit.
The drop triggered by the barrier is so sharp that it can't be just a pullback towards the previous high of 5,220 ringgit.
Instead, this drop could be a decent correction against a five-wave cycle from 4,294 ringgit.
Palm eases from record high on profit-taking
The correction could be extending towards the bottom of the wave 4 around 4,923 ringgit.
The mixed CBOT grain market on Monday may not have much impact on the opening price of palm oil. Most likely, the contract could stick to its own course to open around 5,174 ringgit and hang around this level most of the day.
A break above 5,247 ringgit may lead to a gain to 5,292 ringgit.
On the daily chart, a target around 5,821 ringgit has to be aborted, following the drop triggered by the resistance at 5,350 ringgit.
The drop signals an unsuccessful extension of the uptrend above the Oct. 21, 2021 high of 5,220 ringgit.
The bearish divergence on the daily RSI confirms an exhaustion of the uptrend.
A deep correction could be well on the way.
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.
Comments
Comments are closed.