Palm oil may rise into 4,587-4,698 ringgit

SINGAPORE: Palm oil may break a resistance at 4,493 ringgit per tonne and rise into a range of 4,587-4,698 ringgit.

The strong rise from the Sept. 2 low of 4,150 ringgit is classified as a continuation of the uptrend from 3,251 ringgit. Driven by a wave C or wave 3, the contract may extend its gains above the August 12 high of 4,560 ringgit.

A projection analysis on a wave (C) from 1,939 ringgit reveals some levels that work as effective resistances and supports.

The contract failed twice to break 4,493 ringgit, it may succeed in its current attempt. A break below 4,407 ringgit could cause a fall into a range of 4,239-4,321 ringgit.

The current wave count has to be reviewed once the contract drops into the range.

On the hourly chart, the contract seems to be riding on a wave 3, which is capable of travelling into 4,553-4,701 ringgit range.

A double-bottom has been confirmed, suggesting a target of 4,701 ringgit as well.

Immediate support is at 4,434 ringgit, a break below which may cause a fall to a range of 4,349-4,405 ringgit.

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