SINGAPORE: Palm oil may retest a resistance at 7,302 ringgit per tonne, a break above which could lead to a gain to 7,504 ringgit.
A five-wave cycle from 4,291 ringgit was believed to have completed at the March 2 high of 7,108 ringgit.
The nature of the current rise thus looks a bit confusing.
One thing is certain that the uptrend has resumed, as a fresh high of 7,268 ringgit was hit on Wednesday.
The rise adopted an impulsive wave mode. It consists of five small waves.
The wave 4 may end around 6,898 ringgit, to be reversed by the wave 5. On the daily chart, the contract is about to break a resistance at 7,166 ringgit.
A break could open the way towards 8,289 ringgit, as suggested by the upper channel.
A realistic target will be 7,638 ringgit, which will be confirmed only when palm oil stands firm above 7,166 ringgit.
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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