SINGAPORE: Palm oil may retest a resistance at 4,329 ringgit a tonne, a break above which could lead to a gain into 4,400-4,497 ringgit range.
The contract narrowly missed this barrier on Wednesday. Given that it has managed to stabilize around the 61.8% retracement of 4,226 ringgit, it has a better chance of revisiting the high at 4,497 ringgit.
However, palm oil may fail in its following attempt to break 4,329 ringgit, which is strengthened by another one at 4,333 ringgit, the peak of the wave b and the Nov. 11 high.
A break below 4,142 ringgit could be followed by a drop into 3,955-4,058 ringgit range.
Palm oil logs second consecutive monthly rise
On the daily chart, the contract is facing a resistance at 4,331 ringgit, which is near 4,329 ringgit (hourly chart).
These resistances will work together to trigger a correction towards 4,070 ringgit. A break above 4,543 ringgit, however, could open the way towards 4,543-4,754 ringgit.
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