SINGAPORE, May 29 (Reuters) – Palm oil FCPOc3 may climb into a range of 4,002 ringgit to 4,025 ringgit per metric ton, as it has broken resistance at 3,949 ringgit.
The contract is riding on a wave (c), which is expected to travel to 4,002 ringgit. A retracement analysis on the downtrend from 4,443 ringgit reveals a higher target of 4,025 ringgit.
CBOT soybeans SN24 dropped a lot on Tuesday, which may have an impact on the open price of palm oil. As long as the latter maintains above support at 3,949 ringgit, the target range of 4,002 ringgit to 4,025 ringgit will remain intact.
A break below 3,949 ringgit could be followed by a drop into the 3,865-3,917 ringgit range. On the daily chart, the contract has broken resistance at 3,926 ringgit. It is heading towards the 4,025-4,124 ringgit range.
A rising channel is taking shape, which defines a price band for the uptrend.