SINGAPORE: Palm oil may rise to 4,196 ringgit per tonne, as it has broken a resistance at 4,009 ringgit. The next resistance is at 4,196 ringgit, a break above which could lead to a gain to 4,311 ringgit.
The current rise is tentatively classified as a part of a big flat pattern developing from the Dec. 12, 2022 low of 3,721 ringgit.
The pattern suggests a target around 4,311 ringgit. A break below 4,009 ringgit, now a support, may trigger a drop to 3,859 ringgit.
On the daily chart, a correction from 4,497 ringgit may have completed, following the strong surge on Thursday.
The surge could be due to the continuation of the uptrend from 3,220 ringgit. The latest development of the chart suggests the formation of an inverted head-and-shoulders, which was aborted.
Palm oil biased to fall to 3,859 ringgit
The pattern has been reconsidered. It is still too early to confirm this very bullish pattern.
The immediate focus is on the nearest resistance of 4,196 ringgit and the support of 4,009 ringgit.
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