The bounce looks like a pullback towards 4,225 ringgit. Despite its repeated attempts, it still failed to break 4,265 ringgit and extend further.
TECHNICALS-Palm oil may retest support at 4,106 ringgits
SINGAPORE, Jan 22 (Reuters) - Palm oil FCPOc3 may revisit Jan. 16 low of 4,106 ringgit per metric ton, as a bounce triggered by this barrier seems to have completed around 4,265 ringgits.
The bounce looks like a pullback towards 4,225 ringgit. Despite its repeated attempts, it still failed to break 4,265 ringgit and extend further.
The bounce was shaped into a rising wedge, which seems to be more a bearish continuation pattern than a bullish pattern. A fall to 4,135 will confirm the bearish scenario.
A break above 4,265 ringgit would lead to a gain into 4,315 ringgit to 4,364-ringgit range. On the daily chart, the bounce looks like a pullback towards 4,227 ringgit, as the market lost its momentum after briefly piercing above this level.
A close below 4,227 ringgit on Wednesday will be a convincing signal of the completed pullback. The contract may drop towards 4,002 ringgits thereafter.
