SINGAPORE: Palm oil may test a resistance at 5,966 ringgit per tonne, a break above may lead to a gain to 6,104 ringgit.
The current bounce seems to be extending towards the peak of a wave b around 6,104 ringgit, which is suggested by a falling channel as well.
Strategically, this target will be confirmed when palm oil breaks 6,104 ringgit, as it failed to overcome this barrier in its first attempt. It is not very clear if palm oil could break this resistance in its second attempt.
Palm oil may rise into 5,855-5,966 ringgit range
A break below 5,855 ringgit may signal a continuation of the downtrend towards 5,606 ringgit.
On the daily chart, the contract roughly observes a set of retracements on the uptrend from 4,245 ringgit. After breaking 5,757 ringgit, it has a better chance of rising to 6,113 ringgit.
A further gain could signal a reversal of the downtrend.
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