SINGAPORE: Palm oil may rise into a range of 4,132-4,196 ringgit a tonne, as it managed to hover above a rising trendline.
Chances are the uptrend from 3,220 ringgit could extend, as long as the contract remains above the support of 3,945 ringgit.
The strong reaction of the market to the support suggests the development of wave c, which is capable of travelling into 4,132-4,196 ringgit range.
A break below 3,945 ringgit could signal an extension of the wave C from 4,300 ringgit, towards 3,590-3,861 ringgit range. On the daily chart, the contract refused to fall below a support of 3,891 ringgit.
The longer it stays above this level, the more likely it rises towards 4,331 ringgit.
Palm oil may revisit Tuesday low of 3,865 ringgit
The presumed inverted head-and-shoulders from the July 14 low of 3,489 ringgit looks doubtful.
A break below 3,891 ringgit could open the way towards 3,522-3,647 ringgit range.
Source: Brecorder
