The Hindu Business Line : Palm oil may consolidate

The third month active front month contract moved higher after testing the support levels. The prices went below 1,408 Malaysian ringgit (MYR) a tonne and bounced higher. Only a move below 1,393 MYR/tonne will cast doubts on the overall bullish outlook. Expect prices to move in a range of 1,421-1,435 MYR/tonne next week and subsequently rise higher. The move to 2,003 MYR/tonne is the end of the fifth wave impulse and a move lower from there is a corrective A-B-C pattern in the making. The correction ended at 1,252 MYR/tonne. We are possibly in a new impulse with the first wave of the impulse ending at 1,504 MYR/tonne and the second wave ending at 1,329 MYR/tonne. The third wave seems to have begun looking to target the 1,600 MYR/tonne levels ultimately. RSI is entering the oversold zone indicating a correction. Prices are below the short-term 8-day period EMA at 1,429 MYR/tonne and the 34-day period EMA is at 1,431 MYR/tonne. Look for prices to consolidate in a range and rise higher again. Supports are at MYR 1,421, 1,408 and 1,393. Resistances at MYR 1,435, 1,458 and 1,478.

(The author is associated with the Multi Commodity Exchange of India Ltd . The views expressed iare his own and not necessarily that of his employer. This analysis is based on historical price movements and there is risk of loss in trading.)

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bullish trend in rubber continues

Palm oil may consolidate