SINGAPORE: Palm oil may gain more into a range of 7,182-7,300 ringgit per tonne, as it has pierced above a key resistance at 6,990 ringgit.
The contract is riding on an extended wave (5), which is likely to travel to 7,492 ringgit, as it shows little sign of ending around 6,990 ringgit.
It is generally very difficult to predict the peak of an extended wave five.
The current strong bullish momentum suggests a huge upside potential.
Corrections, if any, will be shallow, probably limited to the support zone of 6,798-6,872 ringgit.
On the daily chart, the rise is unbelievably fast, as the contract so quickly fulfilled a target of 6,875 ringgit.
It is almost certain that palm oil would open high on Wednesday and move into the price band defined by a new channel.
An aggressive target of 8,400 ringgit will be established once palm oil stays firm above 7,166 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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