MARKET DEVELOPMENT
Palm oil may rise into 4,751-4,812 ringgit range
Palm oil may rise into 4,751-4,812 ringgit range
27.12.2021 (www.brecorder.com) - SINGAPORE: Palm oil may break a resistance at 4,676 ringgit per tonne, and rise into 4,751-4,812 ringgit range.
The contract could be rising toward 4,812 ringgit, the 50% projection level of a downtrend from 5,069 ringgit, as pointed by a falling trendline.
A double-bottom around 2,498 ringgit has been confirmed, suggesting a slightly lower target of 4,751 ringgit. After breaking above 4,625 ringgit, the contract is poised to test the next resistance at 4,676 ringgit.
A break below 4,625 ringgit, now a support, may cause a fall into 4,555-4,591 ringgit range.
On the daily chart, the big white candlestick on Dec. 24 characterizes a strong bullish momentum, which is likely to drive the price toward 4,878 ringgit.
A retracement analysis on the uptrend from 3,251 ringgit reveals a key support at 4,236 ringgit, the 50% level, around which the drop from 5,220 ringgit ended.
The following strong recovery suggests a continuation of the uptrend.
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