SINGAPORE: Palm oil is poised to break a resistance at 3,754 ringgit per tonne, and rise into a range of 3,824-3,919 ringgit.
The sharp surge from the Oct. 14 low of 3,594 ringgit signals that bulls are determined to break the falling trendline and push the price higher.
Following their several failures to break the line, they could have accumulated enough momentum from the preceding shallow correction so as to launch the decisive blow on bears.
A break below 3,652 ringgit may be followed by a drop into 3,487-3,570 ringgit range. On the daily chart, the big white candle on Thursday signals a completion of the fall towards 3,647 ringgit.
Palm oil may test support at 3,652 ringgit
The contract may rise towards 3,891 ringgit. The current consolidation is expected to be roughly symmetrical to the one between Sept. 8 and Sept. 21.
The former has a shorter duration, which may extend within the range of 3,647-3,891 ringgit.
Comments
Comments are closed for this article.