Palm oil set to revisit May 12 high of 4,525 ringgit

SINGAPORE: Palm oil is poised to revisit its May 12 high of 4,525 ringgit per tonne, as the uptrend from 3,375 ringgit may have resumed.

The resumption was suggested by the surge on Thursday. The surge was so strong that it almost reversed the drop from the Tuesday high of 4,480 ringgit.

Due to this strong move, waves on the uptrend have been relabelled.

The contract might be riding on a wave 5 which is capable of travelling into 4,606-4,676 ringgit, as pointed by a rising trendline.

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Support is at 4,379 ringgit, a break below could signal an extension of the wave 4 towards a range of 4,266 ringgit to 4,336 ringgit.

On the daily chart, the contract seems to be riding on a big wave (C) from the 2008 low of 1,331 ringgit, which has an ultimate target of 5,124 ringgit.

The short-lived pullback towards 4,229 ringgit indicates a prevailing bullish sentiment, which could help push the price into a range of 4,608 ringgit to 4,858 ringgit.

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