SINGAPORE: Palm oil looks neutral in a range of 5,528-5,608 ringgit per tonne, and an escape could suggest a direction.
A break above 5,608 ringgit could lead to a gain into 5,676-5,749 ringgit range, while a break below 5,528 ringgit could open the way toward a zone of 5,366-5,425 ringgit.
The drop from the Feb. 7 high of 5,749 ringgit is against a five-wave cycle from 4,294 ringgit.
It may extend towards the bottom of the wave 4 at 4,912 ringgit.
Based on these readings, the bias could be towards the downside.
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On the daily chart, the contract is stuck in a narrow range of 5,529-5,644 ringgit, which is similar to the neutral range on the hourly chart.
Signals are a bit mixed as a rising trendline suggests a drop, while a bullish engulfing pattern indicates a gain towards 5,749 ringgit. With CBOT grains having suffered a loss on Thursday, palm oil may fall on Friday.
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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