Palm oil may test resistance at 4,452 ringgit
24/08/2022 (Business Recorder) - Palm oil may test a resistance at 4,452 ringgit per tonne, a break above which could lead to a gain to 4,680 ringgit.
The contract has broken a resistance at 4,269 ringgit. The next resistance will be at 4,452 ringgit. The rise over the past two days suggests the development of a double-zigzag within a rising channel.
Seven waves make up the pattern.
The current wave c may travel to 4,680 ringgit, as pointed by a rising channel.
Support is at 4,085 ringgit, a break below which may confirm a continuation of the drop from the August 12 high of 4,255 ringgit.
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On the daily chart, an upward wave (4) could be extending towards a range of 4,543-4,754 ringgit.
Once the contract climbs above 4,543 ringgit, the current wave count has to be revised, as the downtrend from 7,229 ringgit could hardly resume.
The anticipated wave (5) may never come.