SINGAPORE: Palm oil may retest a resistance zone of 4,155-4,196 ringgit per tonne, probably after a moderate consolidation in the narrow range of 4,083-4,155 ringgit.
The current rise is considered as a part of a big flat pattern developing from the Dec. 12, 2022 low of 3,721 ringgit. The pattern is characterized by three component waves that are roughly equal.
It suggests a target around 4,311 ringgit. This target will only be confirmed when palm oil breaks 4,196 ringgit, as the wave c from 3,851 ringgit may complete around this level if it is much weak.
A break below 4,083 ringgit may trigger a drop to 4,009 ringgit.
On the daily chart, the contract is expected to retest a resistance zone of 4,196-4,311 ringgit.
Palm oil gains for second week on weaker ringgit
With the consecutive gains on Feb. 16 and Feb. 17, an inverted head-and-shoulders came into view again.
The pattern suggests a bullish target of 4,497 ringgit.
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