Palm oil may retest resistance at 4,587 ringgit

SINGAPORE: Palm oil may retest a resistance at 4,587 ringgit per tonne, a break above which could lead to a gain to 4,698 ringgit.

The correction triggered by the resistance seems to have ended around a support at 4,407 ringgit. An upward wave C may have resumed towards a range of 4,587-4,698 ringgit.

The uptrend looks incomplete, as based on the depth of the correction from the July 30 high of 4,498 ringgit, the trend may extend to 4,878 ringgit. A break below 4,407 ringgit could cause a fall into 4,239-4,321 ringgit range.

Price of imported palm oil rises unprecedentedly by over 100pc

On the hourly chart, a projection analysis reveals a precise resistance at 4,557 ringgit, the 161.8% projection level of an upward wave 3 from 4,169 ringgit.

The shallow drop triggered by this resistance has almost been reversed. The reversal signals a continuation of the uptrend towards 4,649 ringgit.

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