TECHNICALS-Palm oil targets 4,045-4,106 ringgit range
SINGAPORE, Jan 28 (Reuters) - Palm oil FCPOc3 may break support at 4,163 ringgit per metric ton, and fall into the 4,045 ringgit to 4,106 ringgit range.
The consolidation above the support at 4,106 ringgit has taken the shape of a wedge, which looks like a bearish continuation pattern, suggesting a target around 4,000 ringgit.
The pattern will be confirmed when the market breaks 4,163 ringgit. A break above 4,265 ringgit would lead to a gain into the 4,315 ringgit to 4,364 ringgit range.
On the daily chart, the contract failed twice to stand above 4,227 ringgit. The failures decrease the chance of a further bounce.
A drop towards 4,002 ringgit looks more likely.
