Palm oil to rise into 4,873-4,948 ringgit range; uptrend steady

SINGAPORE: Palm oil may break a resistance at 4,812 ringgit per tonne and rise into a range of 4,873-4,948 ringgit.

A correction from the Oct. 21 high of 5,220 ringgit has completed, as confirmed by its three-wave structure and the strong bounce triggered by the support at 4,555 ringgit.

Over the next few days, the contract may rise towards the peak of the wave b at 5,069 ringgit. A gap forming on Monday is expected to be paritially covered on Tuesday, probably at the open of the market.

A break below 4,676 ringgit may cause a fall into 4,555-4,625 ringgit range. On the daily chart, the uptrend remains steady within a rising channel. It may extend towards 5,170 ringgit.

A realistic target will be either 4,878 ringgit or 5,024 ringgit.

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