SINGAPORE: Palm oil may retest a resistance at 3,897 ringgit per tonne, a break above which could lead to a gain into 3,960-4,018 ringgit. An upward wave c from 3,631 ringgit looks incomplete.
It consists of five smaller waves. So far, only four have unfolded.
The wave v is expected to push the price towards 3,897-3,960 ringgit range.
A break below 3,796 ringgit could prove the wave count incorrect.
A bearish target zone of 3,694-3,733 ringgit will be established accordingly.
On the daily chart, the contract is about to escape from a neutral range of 3,647-3,891 ringgit.
Palm oil may retest resistance at 3,796 ringgit
The strong surge on Wednesday indicates a rise above this range.
However, a single white candle could be sometimes deceiving. Until the contract stands firm above 3,891 ringgit, a bullish target of zone of 4,070-4,331 ringgit won’t be confirmed.
A break below 3,647 ringgit will signal the continuation of the downtrend towards 3,224-3,386 ringgit range.
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