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Wednesday, December 7, 2022

Palm oil may test support at 4,311 ringgit

SINGAPORE: Palm oil may test a support at 4,311 ringgit a tonne, a break below which could open the way towards 4,220-4,264 ringgit range.

The contract failed thrice to break a resistance at 4,459 ringgit.

The failures suggest the completion of a wave 5 and the formation of a top around this level.

The bearish divergence on the hourly RSI indicates a slim chance of the contract to break this level and rise more. Even a brief piercing seems unlikely.

A break could lead to a limited gain into the range of 4,533-4,607 ringgit.

On the daily chart, the contract faces a strong resistance at 4,495 ringgit, which is strengthened by another one at 4,543 ringgit.

Palm oil may rise towards 4,607 ringgit

The sideways move in the range of 4,331-4,543 ringgit indicates a completion of a five-wave cycle.

The current speculation is an inverted head-and-shoulders is developing.

Even though this is a bullish pattern, its right shoulder is yet to unfold towards 3,522-3,647 ringgit range, as this shoulder is expected to be roughly symmetrical to the left one.

Palm oil may test support at 4,311 ringgit

Source: Brecorder

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