Palm oil may rise into 4,458-4,531 ringgit range

SINGAPORE: Palm oil may rise into a range of 4,458-4,531 ringgit per tonne, as it has risen far above a key barrier at 4,260 ringgit.

A wave B peaked at the resistance of 4,260 ringgit. Following the surge above this level, the downtrend from the May 12 high of 4,525 ringgit is unlikely to resume.

Instead, this high is very likely to be revisited. A projection analysis on the uptrend from 3,383 ringgit reveals an immediate target of 4,458 ringgit, a break above which could lead to a gain to 4,531 ringgit.

Palm oil targets 4,344 ringgit

On the daily chart, the contract broke a resistance at 4,344 ringgit, which is regarded as the last barrier towards 4,525 ringgit.

It might be time to set a higher target at 5,124 ringgit, which is the 100% projection level of a giant wave (C) from 1,331 ringgit.

This aggressive target is pointed by a rising trendline. It will be available when the contract stands firm above 4,525 ringgit.

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