SINGAPORE: Palm oil may test a resistance at 3,782 ringgit per tonne, a break could open the way towards 3,900-3,999 ringgit range. Bullish divergence formed on the hourly RSI, signalling an exhaustion of the downtrend.
A decent bounce is due.
A projection analysis reveals a strong support at 3,592 ringgit, which seems to have temporarily stopped the fall and triggered a bounce.
Palm reverses early gains to hit more than one-year low
It is not very clear how strong the bounce would be.
The 3,782 ringgit looks like an easy target.
A break below 3,543 ringgit could open the way towards 3,284-3,438 ringgit range.
On the daily chart, an inverted hammer appeared on Thursday, succeeding the long-shadowed hammers on July 6 and July 7 that both failed to work as a reversal pattern.
This frequent appearance of reversal patterns in such a short interval is sending a clear signal that the current wave 5 could be ending very soon.
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