SINGAPORE: Palm oil may test a resistance of 4,085 ringgit per tonne, a break above which could lead to a gain to 4,269 ringgit.
The contract managed to stabilize around a support at 3,717 ringgit.
The stabilization means a lot to bulls as it could be followed by a rise stronger than the one from the July 14 low of 3,489 ringgit.
The bullish divergence on the hourly RSI simply suggests a slim chance of the contract to revisit this low.
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The sideways moves over the past few days could be due to a slow reversal of the downtrend.
A break below 3,717 ringgit could trigger a shallow drop into 3,489-3,598 ringgit range.
On the daily chart, the downtrend seems to be slowly turning around.
This could be due to the completion of a five-wave cycle from 6,698 ringgit.
The bullish divergence guarantees a further gain.
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