SINGAPORE: Palm oil may retest a resistance at 3,372 ringgit per metric ton, a break above could lead to a gain into the 3,425-3,511 ringgit range.
The current rise consists of three waves. So far, only two have unfolded.
The wave c is capable of travelling into the 3,425-3,511 ringgit.
A retracement analysis on the downtrend from 3,837 ringgit reveals its close relation to the rise.
It might not be groundless to expect an extension of the wave c to 3,685 ringgit, which is pointed by a falling channel, as the rise may develop into a short-term trend as big as the one from the April 28 low of 3,288 ringgit.
A break below 3,288 ringgit could be followed by a drop to 3,194 ringgit.
On the daily chart, the gain looks far from complete.
Palm oil rebounds on soyaoil strength, rising supply caps gains
The bullish divergence on MACD and the rise from the June 1 low of 3,194 ringgit indicate a reversal of the downtrend from 3,980 ringgit, or the longer trend from the March 2 high of 4,425 ringgit.
Under these scenarios, the contract is expected to climb into a range of 3,845-3,980 ringgit.
The correction triggered by the resistance at 3,408 ringgit seems to have little impact on the rise, as market has stabilized aorund a support of 3,273 ringgit.
Comments
Comments are closed.