Palm oil may test resistance at 3,757 ringgit
The Hindu Business Line (13/01/2021) - Palm oil may test a resistance at 3,757 ringgit per tonne, a break above which could lead to a gain to 3,835 ringgit.
The resistance is identified as the 300% projection level on the uptrend from 2,764 ringgit. The part of this trend from3,370 ringgit adopted a five-wave mode.
The correction triggered by the resistance at 3,883 ringgit was driven by a wave 4, which may have ended around 3,679 ringgit, as suggested by its three-wave structure and the bounce from the Tuesday low of 3,690 riniggit.
A break below 3,712 ringgit may cause a fall into3,631-3,679 ringgit range. The contract found a support at 3,698 ringgit on the daily chart, the 86.4% projection level of an upward wave C from 2,691 ringgit. Chances are the uptrend may resume from around this support.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.