SINGAPORE: Palm oil may extend its gains into 5,032-5,048 ringgit per tonne, as it has broken a key resistance at 4,909 ringgit.
The break confirms an extension of the wave 3 from 4,318 ringgit, towards the 5,187-5,274 ringgit range.
A projection analysis on a big wave C from 4,125 ringgit reveals a break above 4,841 ringgit, the 61.8% level. The break opens the way towards 5,341 ringgit.
A break below 4,909 ringgit, now a support, may cause a shallow fall to 4,822 ringgit. On the daily chart, the contract has broken a resistance at 4,878 ringgit.
It is expected to gain more to 5,170 ringgit.
A flag suggests a higher target of 5,340 ringgit.
However, a realistic target could be 5,024 ringgit.
A rising trendline suggests the occurrence of a decent correction around 5,170 ringgit.
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