SINGAPORE: Palm oil may retest a support at 3,853 ringgit per tonne, a break below which could open the way towards 3,797 ringgit. The drop on Wednesday confirmed a completion of the uptrend from the March 24 low of 3,500 ringgit.
It is certain that the trend would be further reversed.
However, it is not very clear how deep the current fall could extend.
The clearer part is a common gap forming between March 31 and April 3 could be covered.
Resistance is at 3,910 ringgit, a break above which may lead to a gain to 3,963 ringgit.
On the daily chart, the strong bounce triggered by the support at 3,521 ringgit seems to be a pullback towards a rising trendline.
The failure of the contract to climb above the line suggests a completion of the bounce.
Either the downtrend from the March 2 high of 4,425 ringgit would resume or the uptrend from 3,500 ringgit would be deeply reversed.
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