SINGAPORE: Palm oil may test a support at 5,484 ringgit per tonne, with a good chance of breaking below this level and falling into 5,366-5,425 ringgit range.
The contract failed to break a resistance at 5,608 ringgit.
The failure marked the completion of a bounce from the Feb. 17 low of 5,412 ringgit.
The downtrend from the Feb. 15 high of 5,773 ringgit may have resumed, which may consist of three waves. The wave c is unfolding towards the target zone.
A break above 5,608 ringgit could lead to a gain into 5,676-5,749 ringgit range. On the daily chart, a round top is forming below a key resistance at 5,821 ringgit.
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The top will be confirmed when the contract breaks 5,412 ringgit. The break could open the way towards 5,189 ringgit.
A break above 5,666 ringgit would complicate the picture as the contract may either peal around 5,821 ringgit or extend much to 6,112 ringgit.
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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