Palm oil may fall into 3,602-3,691 ringgit range
- Following the deep fall, the break above a descending trendline is considered to be false. All these bearish signals point south
SINGAPORE: Palm oil may break a support at 3,757 ringgit and fall into a range of 3,602 ringgit to 3,691 ringgit per tonne, as an uptrend from 3,251 ringgit could have reversed.
The deep fall from the July 6 high of 3,978 ringgit strongly suggests the reversal. A common gap forming on July 1 is expected to be filled as well.
Following the deep fall, the break above a descending trendline is considered to be false. All these bearish signals point south.
Resistance is at 3,853 ringgit, a break above which could lead to a gain into 3,931-4,009 ringgit range. The bearish view has to be temporarily aborted then.
On the daily chart, the pullback towards a rising trendline has completed.
Palm oil may test resistance at 3,931 ringgit
The downtrend from 4,525 ringgit may have resumed towards 3,537 ringgit.
A break above 3,915 ringgit may lead to a gain to 4,147 ringgit.
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