SINGAPORE: Palm oil may test a resistance at 6,099 ringgit per tonne, with a good chance of breaking above it and rising towards 6,213-6,354 ringgit range.
The contract managed to close above a support at 5,984 ringgit, the 61.8% projection level of a wave c from 6,582 ringgit.
This wave has a better chance of ending around this support, instead of extending a lot to 5,615 ringgit.
A break above 6,099 ringgit could confirm the reversal of the downtrend, while a fall below the Thursday low of 5,825 ringgit will signal the continuation of the wave c towards 5,615 ringgit.
Indonesia’s March palm oil exports down 40% y/y
On the daily chart, a trendline rising from 4,245 ringgit establishes a support around 6,000 ringgit, which is expected to trigger a decent bounce.
A gap forming between May 13 and May 17 is likely to be covered once the contract breaks a resistance at 6,122 ringgit.
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