Tuesday, October 5, 2010

Palm Oil Technicals from Reuters

SINGAPORE, Oct.5 (Reuters) - Malaysian palm oil may extend its loss to a range between 2,600 ringgit and 2,588 ringgit per tonne, as per a channel technique.

A long-term trendline resistance at 2,733 ringgit proved to be strong, and a failure to break it indicates the weakness of the bullish momentum.

As a result, palm oil would retrace to a support at 2,600 ringgit to accumulate strength before climbing up again.

The 2,600 ringgit support is provided by the lower channel line of an identical channel which was duplicated from the upper channel.

Resistance is at 2,690 ringgit, a rise above which would extend its gain to 2,720 ringgit. 


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