Palm oil may rise into 3,348-3,381 ringgit range

SINGAPORE: Palm oil may break a resistance at 3,300 ringgit per tonne, and rise into a zone of 3,348-3,381 ringgit.

The zone is formed by the 176.4% and the 186.4% projection levels of an uptrend from 2,746 ringgit. The fall from the Jan. 6 high of 3,888 ringgit has completed, as indicated by its five-wave structure and the bounce from around a support 3,173 ringgit.

The bounce is expected to extend towards the peak of a wave 4 around 3,348 ringgit. A retracement analysis on the fall reveals a target zone of 3,332-3,438 ringgit, which engulfs the 3,348 ringgit level.

A break below 3,221 ringgit could cause a fall into 3,143-3,173 ringgit range. On the daily chart, the contract stabilized around a support at 3,148 ringgit, the 61.8% retracement on the uptrend from 2,691 ringgit to 3,888 ringgit.

A hammer forming on Tuesday, signaling the completion of the drop triggered by the resistance at 3,290 ringgit. The contract is poised to break this resistance and rise towards 3,431 ringgit.

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