Palm oil may fall into 4,096-4,155 ringgit range
- This latest reading suggests a reversal of the uptrend from the June 18 low of 3,251 ringgit
SINGAPORE: Palm oil may fall into a range of 4,096 ringgit to 4,155 ringgit per tonne, driven by a wave c.
The drop on Monday confirmed an extension of a wave (c) from 4,560 ringgit. Three smaller waves make up the wave (c).
The third wave, the wave c, is travelling towards the target zone.
Palm oil tracks strength in rival oils
The wave (c) is regarded as a part of an irregular flat from 4,498 ringgit. It may travel into a range of 3,905 ringgit to 4,000 ringgit.
Resistance is at 4,310 ringgit, a break above could lead to a gain into 4,358-4,405 ringgit range. On the daily chart, the rise from 4,160 ringgit turned out to be a pullback towards a rising trendline.
This latest reading suggests a reversal of the uptrend from the June 18 low of 3,251 ringgit.
The pattern from the July 27 high of 4,480 ringgit looks like a bearish head-and-shoulders, which will be confirmed when the contract breaks 4,116 ringgit.
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