Technicals: Palm oil biased bounce toward 4,930 ringgit.
TECHNICALS-Palm oil biased bounce toward 4,930 ringgit. SINGAPORE, Sept 17 (Reuters) - Palm oil FCPOc3 is biased to break a resistance at 4,903 ringgit per metric ton, and bounce more toward 4,930 ringgit.
The contract has broken a falling trendline. The break suggests the completion of a wave C from 5,018 ringgit, which could be broken down into five smaller waves.
The peak of the small wave d around 4,930 ringgit serves as one of the possible targets, which will be confirmed when the market breaks 4,903 ringgit.
The consolidation below 4,903 ringgit is tentatively classified as a pullback toward a falling trendline, unless the contract drops again and breaks the support at 4,843 ringgit.
The break will signal a continuation of the downtrend. On the daily chart, the consolidation from the August 21 high of 5,031 ringgit has taken the shape of either a flat pattern or a double-top.
A double-top would be confirmed when the market breaks 4,814 ringgit while a flat could only be confirmed then the contract breaks 5,032 ringgit.
Regardless of the final pattern, a further bounce might be likely.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace platform, a London Stock Exchange product.
** No information in this analysis should be considered business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.
(Reporting by Wang Tao; Editing by Sherry Jacob-Phillips)
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