SINGAPORE: Palm oil may test a support at 3,652 ringgit per tonne, with a good chance of breaking below this level and falling to 3,570 ringgit.
The contract failed to break a resistance at 3,858 ringgit and a falling trendline. The failure suggests a continuation of the downtrend from 4,495 ringgit.
The trend may extend below 3,220 ringgit.
A realistic target could be either 3,652 ringgit or 3,570 ringgit.
A break above 3,754 ringgit could lead to a gain to 3,824 ringgit.
On the daily chart, after many days of white candlestick, the first black candle appeared on Tuesday, following a failure of the contract to break a resistance at 3,891 ringgit.
Palm falls over 3%, end 7-day rally on higher inventory
This bearish candle signifies a pause or completion of the rise.
Palm oil may consolidate in the range of 3,647 to 3,891 ringgit for a few days, to form a pattern roughly symmetrical to the one between Sept. 8 and Sept. 21.
Source: Brecorder
