SINGAPORE: Palm oil may fall to 4,261 ringgit per tonne, as suggested by a triple-top.
The contract failed three times to break a resistance at 4,557 ringgit, around which, a small triple-top has formed and been confirmed.
The pattern suggests a target of 4,261 ringgit. It is not very clear if palm oil could drop to a lower level, as the rise from the Aug. 2 low of 4,093 ringgit does not fit well into the wave category of the preceding uptrend from the June 18 low of 3,251 ringgit.
Resistance is at 4,466 ringgit, a break above which could lead to a gain into a range of 4,557-4,649 ringgit. On the daily chart, the big black candlestick on Tuesday suggests a further fall on Wednesday.
A break above 4,493 ringgit could lead to a gain into 4,587-4,698 ringgit range.
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