SINGAPORE: Palm oil may end its bounce below a resistance at 5,048 ringgit per tonne and resume the drop from the Oct. 21 high of 5,220 ringgit.
The drop may consist of three waves. The third wave, the wave c, is yet to unfold, which may travel to 4,822 ringgit. A five-wave cycle from 4,125 ringgit has completed.
However, the bigger cycle from 4,032 ringgit still develops, which is classified as a big wave C that may travel to 5,341 ringgit.
Palm rebounds on tight supply concerns, rival oil strength
Based on this wave count, the uptrend may resume upon the completion of the current correction.
On the daily chart, the contract stabilized around a support at 4,878 ringgit.
Over the next few days, palm oil may consolidate above this level and below a resistance at 5,170 ringgit.
A flag pattern developing from 3,251 ringgit suggests a target around 5,450 ringgit. The uptrend from 3,251 ringgit is likely to continue.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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