Palm oil still targets 3,466-3,545 ringgit range

SINGAPORE: Palm oil still targets a range of 3,466 ringgit to 3,545 ringgit per tonne, as it has completed a rally from the Jan. 20 low of 3,160 ringgit.

The rally was driven by a wave B, the second wave of a big flat developing from the Jan. 6 high of 3,888 ringgit. This wave will be totally reversed by the current wave C.

Five smaller waves make up the wave C. The wave d ended around 3,466 ringgit, which works as a target. The current fall seems to be controlled by a set of projection levels on the uptrend from 3,210 ringgit.

The projection analysis reveals a target zone of 3,466-3,545 ringgit. Resistance is at 3,673 ringgit, a break above which could lead to a gain to 3,752 ringgit.

On the daily chart, a rising wedge has been almost confirmed as a bearish pattern. A confirmation will be when the contract falls below 3,581 ringgit.

A break above 3,698 ringgit could open the way towards 3,856 ringgit.

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