SINGAPORE: Palm oil may test a resistance at 4,269 ringgit per tonne, as it has managed to hover above a support at 4,085 ringgit per tonne.
The stabilization of the price suggests a completed correction from the Aug. 12 high of 4,495 ringgit.
The contract may bounce towards the range of 4,269-4,452 ringgit.
A fall below 4,000 ringgit could confirm the extension of the correction towards 3,717-3,857 ringgit range.
On the daily chart, a projection analysis reveals a support at 4,070 ringgit, around which a spinning top appeared.
Palm extends gains on rival oils’ strength, weaker ringgit
This pattern also suggests a completion of the fall.
However, the following move looks a bit unclear, as wave pattern and a rising channel send conflicting signals.
A strong rise towards 4,331 ringgit indicates an extension of the uptrend, while a fall towards 3,891 ringgit could confirm the progress of a wave (5) towards 3,522 ringgit.
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