Technicals: Palm oil may bounce further into 4,930-4,964 ringgit range
TECHNICALS-Palm oil may bounce further into 4,930-4,964 ringgit range SINGAPORE, Sept 15 (Reuters) - Palm oil FCPOc3 may bounce further into the 4,930 ringgit-4,964 ringgit per metric ton, after breaking above 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, a structure indicating the completion of the wave C as well.
The target zone of 4,930 ringgit to 4,964 ringgit will be confirmed when the market breaks 4,903 ringgit. A failure to overcome this barrier would suggest an invalid break above the trendline.
A break below 4,876 ringgit will not only trigger a drop to 4,820 ringgit-4,843 ringgit range, but also indicate 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.
Given that the uptrend from the May 15 low of 4,370 ringgit only extended about 61.8% of the preceding trend from the December 19 low of 3,893 ringgit, the bullish flat pattern is likely to be confirmed.
** 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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