Palm oil may test support at 4,927 ringgit

SINGAPORE: Palm oil may test a support at 4,927 ringgit per tonne, a break below which could open the way towards 4,806 ringgit.

A five-wave cycle from 4,294 ringgit has completed around a resistance at 5,094 ringgit.

It is expected to be partially or totally reversed.

The wave 4 ended in a range of 4,611-4,709 ringgit, which works as a target zone for this and next week probably. Despite its five-wave structure, the rise from 4,294 ringgit still looks like a part of a big correction from 5,220 ringgit.

A surge above 5,002 ringgit may be extended to 5,065 ringgit. On the daily chart, the contract failed to break a resistance at 5,082 ringgit, which is strengthened by two other ones, respectively at 5,069 ringgit, the Nov. 19, 2021 high, and 5,086 ringgit, the Nov. 3, 2021 high.

The failure triggered a deep correction which may at least extend to 4,755 ringgit, as suggested by the symmetrical nature of the chart.

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