Palm oil may rise to 5,094 ringgit and then reverse

SINGAPORE: Palm oil may rise to 5,094 ringgit per tonne, as it has cleared a resistance at 5,001 ringgit.

The next resistance will be 5,094 ringgit, a break above which could lead to a gain to 5,155 ringgit.

The fall from the Thursday high of 5,053 ringgit has been almost reversed.

The reversal signals the progress of a wave 5, the fifth wave of a five-wave cycle from 4,672 ringgit.

A drop to 4,685 ringgit could suggest the break above 5,001 ringgit was false.

A bearish target zone of 4,865-4,924 ringgit will be established accordingly.

On the daily chart, the contract faces a resistance at 5,082 ringgit, which is strengthened by two other ones, respectively at 5,069 ringgit, the Jan. 19, 2021 high and 5,086 ringgit, the Nov. 3, 2021 high.

A break above 5,082 ringgit could lead to a gain to 5,220 ringgit. However, it is not going to be an easy task. Most likely, the contract will fail to overcome this barrier in its first attempt.

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