Palm oil still targets 3,958-4,001 ringgit range
25.10.2022 () - SINGAPORE: Palm oil still targets a range of 3,958-4,001 ringgit per tonne, as it remains below a resistance at 4,194 ringgit.
The barrier is identified as the 76.4% retracement of the downtrend from 4,495 ringgit. It is strengthened by a similar one of 4,184 ringgit.
Despite its two attempts, the contract failed to break these resistances and rise towards its ultimate target of 4,253 ringgit.
The failures suggest a reversal of the uptrend from 3,594 ringgit.
A break above 4,194 ringgit could lead to a gain into 4,253-4,322 ringgit range.
On the daily chart, the contract seems has lost its momentum after climbing above a resistance at 4,070 ringgit.
The temporary dissipation of bullish momentum could may be followed by a pullback towards the neckline of an inverted head-and-shoulders developing from Sept. 8.