SINGAPORE, Jan 27 (Reuters) - Palm oil FCPOc3 may test resistance at 4,265 ringgit per metric ton, a break above which could open the way towards 4,315 ringgit to 4,364 ringgit.
The stabilisation of the price at the Jan. 23 low of 4,127 ringgit suggests the formation of a wedge or a small double-bottom.
The former is a bearish pattern while the latter is bullish. A break above 4,265 ringgit may confirm the double-bottom and a target of 4,225 ringgit, while a break below 4,167 ringgit may trigger a fall into 4,045 ringgit o 4,106 ringgit range.
The bias could be toward the upside, as the wave pattern suggests an incomplete small wave c.
On the daily chart, the contract is trying to stabilize around support at 4,227 ringgit. The possibility to fall towards 4,002 ringgit still exists. Only a rise above the Jan. 22 high of 4,278 ringgit could wipe out this possibility.
