SINGAPORE: Palm oil may test a resistance at 5,585 ringgit per tonne, a break above could lead to a gain into the 5,608-5,676 ringgit range.
The current strong rise suggests the progress of an extended wave 5, which consists of five smaller waves.
The powerful wave 5-3 is unfolding.
This wave 5-3 could be much longer than the wave 5-1, to travel above 5,676 ringgit.
After clearing the resistance at 5,484 ringgit, the contract is well on its way towards 5,558 ringgit.
A correction from the current level may be limited to 5,425 ringgit. On the daily chart, palm oil broke a resistance at 5,473 ringgit. The break opened the way towards 5,641 ringgit.
A rising trendline points at a higher target of 5,821 ringgit.
Resistances established by the trendline proved to be very effective in triggering deep drops. Chances are a decent correction may occur in the range of 5,641 ringgit to 5,821 ringgit.
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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