06.09.2021 (www.brecorder.com) –

• The resistance is strengthened by a similar one established by a falling trendline

SINGAPORE: Palm oil may retreat into a range of 4,155 ringgit to $4,251 ringgit per tonne, following its failure to break a resistance at 4,358 ringgit.

The resistance is strengthened by a similar one established by a falling trendline.

The failure to break the line suggests a completion of the bounce from the Sept. 2 low of 4,150 ringgit and a resumption of the downtrend from 4,560 ringgit.

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A break above 4,358 ringgit could lead to a gain into 4,405 ringgit to 4,464 ringgit range. On the daily chart, the uptrend from the June 18 low of 3,251 ringgit may have reversed, as a trendline rising from this level has been broken.

A head-and-shoulders is still developing, which looks a bit unsymmetrical, as there could be two right shoulders. Still, this pattern has a strong bearish indication that the contract may drop to 3,790 ringgit.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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