SINGAPORE: Palm oil is poised to break a support at 4,085 ringgit per tonne, and fall towards 3,857 ringgit.
Following its failure to break 4,085 ringgit on Aug. 24, the contract approached this level again.
Its slow drop over the past few days is a good preparation for overcoming the barrier at 4,085 ringgit.
The current drop is regarded as a part of the correction from the Aug. 12 high of 4,495 ringgit.
Palm oil steady
A break above 4,269 ringgit may lead to a gain into 4,350-4,452 ringgit range. On the daily chart, wave pattern suggests the progress of a wave (5), which is expected to travel to 3,489 ringgit.
This wave will be confirmed when palm oil breaks 4,070 ringgit.
A break above 4,331 ringgit may lead to a gain to 4,543 ringgit.
Source: Brecorder
