SINGAPORE: Palm oil may test a resistance at 5,608 ringgit per tonne, a break above which could lead to a gain to 5,676 ringgit.
A tiny double-bottom has been confirmed, which suggests a target of 5,676 ringgit.
Even if the contract could climb to this level, the downtrend from the Feb. 15 high of 5,773 ringgit is expected to resume, due to the completion of a five-wave cycle from 4,294 ringgit.
A failure to break 5,608 ringgit could be the very early signal of the downtrend resumption.
A break below 5,484 ringgit could confirm the resumption.
On the daily chart, a top is forming below a key resistance at 5,821 ringgit. It looks like a round top, which means a completion of the bounce in the range of 5,550-5,666 ringgit.
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