SINGAPORE: Palm oil may test a resistance zone of 4,184-4,194 ringgit per tonne, with a good chance of breaking above this range and rising to 4,253 ringgit.
The contract is riding on a wave c from 3,776 ringgit, which has travelled far above its 100% projection level of 4,071 ringgit. Chances are this wave may extend to 4,253 ringgit.
A retracement analysis on the fall from 4,495 ringgit reveals a resistance at 4,194 ringgit.
A break above this resistance will be confirmed once palm oil surges to 4,253 ringgit.
The break could open the way towards 4,495 ringgit. Support is at 4,071 ringgit, a break below which could be followed by a drop to 4,001 ringgit.
Palm oil may hover below 4,071 ringgit
On the daily chart, the pattern from Sept. 8 has been confirmed as an inverted head-and-shoulders, suggesting a target of 4,495 ringgit.
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