SINGAPORE: Palm oil may test a resistance at 3,757 ringgit per tonne, a break above which could lead to a gain to 3,835 ringgit.

The resistance is identified as the 300% projection level on the uptrend from 2,764 ringgit.

The part of this trend from 3,370 ringgit adopted a five-wave mode.

The correction triggered by the resistance at 3,883 ringgit was driven by a wave 4, which may have ended around 3,679 ringgit, as suggested by its three-wave structure and the bounce from the Tuesday low of 3,690 riniggit.

A break below 3,712 ringgit may cause a fall into 3,631-3,679 ringgit range. On the daily chart, the contract found a support at 3,698 ringgit, the 86.4% projection level of an upward wave C from 2,691 ringgit. Chances are the uptrend may resume from around this support.

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