SINGAPORE: Palm oil may retest a resistance at 6,392 ringgit a tonne, a break above which could lead to a gain to 6,548 ringgit. A five-wave cycle from 5,477 ringgit looks incomplete.
The fifth wave, the wave 5, is yet to unfold thoroughly.
This wave is expected to travel into a range of 6,548-6,686 ringgit.
The sudden bounce from the April 22 low of 6,217 ringgit could be classified as a pullback towards a rising trendline as well.
Under this scenario, the uptrend from 5,477 ringgit could have indeed reversed.
Key support is fixed at 6,260 ringgit, a break below which could cause a fall into 5,966-6,104 ringgit range.
On the daily chart, the contract seems to have stabilized around a support at 6,190 ringgit.
Palm oil ends three days of losses
It may rise towards a range of 6,584-6,632 ringgit.
A break below 6,190 ringgit may signal a reversal of the uptrend.
Palm oil may slide towards 5,918 ringgit thereafter.
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