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Thursday, October 6, 2022

Palm oil to retest support at 3,717 ringgit

SINGAPORE: Palm oil is expected to retest a support at 3,717 ringgit per tonne, a break below could open the way towards 3,489-3,598 ringgit range.

The bounce from the August 4 low of 3,690 ringgit could be the last effort of the contract to maintain above a short trendline.

The corrective wave structure of the bounce, along with the deep drop from 4,306 ringgit, strongly suggests a continuation of the downtrend from 6,698 ringgit.

Eventually, the support at 3,717 ringgit will be broken.

A break above 3,973 ringgit, however, may signal an extension of the bounce towards 4,085-4,306 ringgit.

On the daily chart, the downtrend from 7,229 ringgit consists of five waves.

Palm oil may test support at 3,717 ringgit

The wave (5) is unfolding towards 2,540-2,963 ringgit range, as pointed by a falling trendline.

The wave (4) has been sharped into an expanding wedge which seems to have completed. It is a bearish continuation pattern.

A break above 4,070 ringgit may indicate an extension of the pattern towards 4,331 ringgit.

Palm oil to retest support at 3,717 ringgit

Source: Brecorder

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