Palm Oil Fell From One-Week High

palm oil

Palm Oil (B- Trams) :Malaysian palm oil futures fell on Thursday from a one-week high scaled in the previous session, as investors fretted aggressive monetary policy tightening would slow global economic growth and dampen demand for commodities.

The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange slid 64 ringgit, or 1.65%, to 3,823 ringgit ($836.91) in early trade, after jumping 4% in the previous session.

It may retest a resistance at 3,897 ringgit per tonne, a break above which could lead to a gain into 3,960-4,018 ringgit. An upward wave  from 3,631 ringgit looks incomplete.

It consists of five smaller waves. So far, only four have unfolded. The wave  is expected to push the price towards 3,897-3,960 ringgit range.

And A break below 3,796 ringgit could prove the wave count incorrect. While    A bearish target zone of 3,694-3,733 ringgit will be established accordingly.

On the daily chart, the contract is about to escape from a neutral range of 3,647-3,891 ringgit.