SINGAPORE: Palm oil may revisit its Tuesday low of 5,202 ringgit per tonne, as a correction triggered by the resistance at 5,366 ringgit looks incomplete.
The correction does not seems to be a pullback towards the previous high of 5,220 ringgit.
Instead, it could be deep drop against a five-wave cycle from 4,294 ringgit.
The correction could be extending towards the bottom of the wave 4 around 4,923 ringgit. There is still a big room for the coming drops.
Palm oil prices pause after rally to record high
Resistance is at 5,292 ringgit, a break above which could lead to a gain to 5,366 ringgit.
On the daily chart, the bearish divergence on the daily RSI strongly suggests an exhaustion of the uptrend.
A deep correction could be around the corner.
There are exceptions, however, that the trend is exceptionally strong to make the divergence ineffective.
A break above 5,350 ringgit could open the way towards 5,473-5,641 ringgit range.
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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