Commodities

Palm oil may bounce toward 3,365 ringgit

Reuters SINGAPORE | Updated on November 17, 2020 Published on November 17, 2020

Palm oil may stabilize around a support at 3,292 ringgit per tonne and bounce toward 3,365 ringgit, as suggested by a projection analysis.

The support is provided by the 186.4% projection level on an uptrend from 2,293 ringgit. An inverted hammer formed on Monday, suggesting a completion of the fall from the Nov. 13 high of 3,413 ringgit, or the first round of the fall.

A drop below the Monday low of 3,278 ringgit may be extended to 3,239 ringgit. On the hourly chart, the contract is riding on a wave 3, which started at 2,764 ringgit.

This wave has a fierce character. It may not be disrupted by a deep correction. The bold speculation is the contract may open above 3,300 ringgit on Tuesday and then rise towards 3,348-3,381 ringgit range.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

** No information in this analysis should be considered as being business, financial or legal advice. 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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Published on November 17, 2020
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