SINGAPORE: Palm oil may break a resistance at 4,459 ringgit a tonne and rise towards 4,607 ringgit, to complete a wave E.
This is the final wave of an uptrend from 3,220 ringgit.
It has been observing a set of projection levels on rise from 3,594 ringgit.
Following a shallow correction, the contract approached the resistance again.
Its persistence represents a prevailing bullish sentiment.
It is not very clear how the drops of the overnight US grains could affect the opening price of palm oil.
An open price within the range of 4,311 ringgit to 4,368 ringgit will be well under expectations.
A break below 4,311 ringgit could open the way towards 4,135-4,220 ringgit range.
The target of 4,607 ringgit has to be aborted accordingly.
On the daily chart, the contract is rising towards 4,495 ringgit - the peak of the wave (4), as suggested by an inverted head-and-shoulders.
It must be noted that the current rise is likely to end around 4,495 ringgit, which is pretty near 4,607 ringgit (hourly chart).
A decent correction is expected to follow, which could deeply extend to 3,647-3,891 ringgit range.