- A correction from the current level may be limited to 3,757 ringgit.
SINGAPORE: Palm oil may test a resistance at 3,856 ringgit per tonne, driven by a wave C.
This wave started at 2,691 ringgit. It has cleared a resistance at 3,698 ringgit, its 86.4% projection level, which is the last barrier towards 3,856 ringgit.
Five smaller waves make up the wave C. The presumed wave 3 looks very short, which suggests the development of an extended fifth wave.
Chances are the current wave 5 may travel far above 3,856 ringgit.
On the hourly chart, a projection analysis on the uptrend from 2,764 ringgit reveals a target zone of 3,835-3,883 ringgit, which engulfs 3,856 ringgit (daily chart).
A correction from the current level may be limited to 3,757 ringgit.
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