Palm oil targets 4,494-4,556 ringgit range

SINGAPORE: Palm oil may extend gains into a range of 4,494-4,556 ringgit per tonne, driven by a powerful wave (3)-3.

This wave has a fierce character, it could easily overcome any barriers ahead. The contract has broken the resistance at 4,393 ringgit, it is rising towards the next resistance at 4,494 ringgit.

A break above 4,556 ringgit could lead to a gain to 4,657 ringgit.

A break below 4,393 ringgit, now a support, may cause a fall into 4,281-4,331 ringgit range.

On the weekly chart, the contract has broken a key resistance at 4,301 ringgit. It is highly likely to rise to 4,576 ringgit very soon. A decent correction may occur around this level.

Increasing the chance of a such a correction is this level is near the 2008 high of 4,486 ringgit, which is also likely to trigger a correction.

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