SINGAPORE: Palm oil still targets 3,757 ringgit per tonne, as suggested by its wave pattern and a projection analysis.

The contract is riding on a wave 5, which may extend a lot, as the preceding wave 3 looks rather short.

Based on this assumption, this wave 5 could at least travel to 3,835, the 323.6% projection level of an upward wave 5 from 2,764 ringgit.

The resistance at 3,712 ringgit triggered a moderate correction, which may be limited to a support at 3,631 ringgit.

On the daily chart, the contract has pierced above a resistance at 3,698 ringgit, the 86.4% projection level of an upward wave C from 2,691 ringgit. Chances are high that it may overcome this barrier and extend to 3,856 ringgit.

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