SINGAPORE: Palm oil may test a resistance at 5,484 ringgit per tonne, a break above could lead to a gain into 5,558-5,608 ringgit range.
The strong surge on Wednesday suggests the development of an extended wave 5, which consists of five smaller waves. The powerful wave 5-3 is unfolding.
This wave is supposed to be longer than the wave 5-1, to travel above 5,676 ringgit. With CBOT soybeans and corn rising a lot on Wednesday, palm oil may jump to 5,484 ringgit on Thursday.
Support is at 5,366 ringgit, a break below could cause a fall into the 5,247-5,292 ringgit range. On the daily chart, the bearish divergence on the daily RSI was violated.
Palm oil closes higher as supply concerns linger
The violation simply confirms an exceptionally bullish market. The contract is expected to climb into a range of the 5,641-5,821 ringgit range, as pointed by a rising trendline.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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