SINGAPORE: Palm oil faces a resistance of 3,801 ringgit per tonne, it may hover below this level or retrace towards a range of 3,624-3,673 ringgit.

The rally from the Jan. 20 low of 3,160 ringgit could be broken down into five waves. This structure indicates that the correction from the March 1 high of 3,819 ringgit may take a longer time to complete.

The correction could have adopted a flat pattern, which consists of three waves that are roughly equal.

The wave c may have just started, unfolding towards the target zone.

A break above 3,801 ringgit could lead to a gain to 3,888 ringgit. On the daily chart, the correction from the Jan. 6 high of 3,888 ringgit will not be considered complete as long as the contract remains below this level.

The correction may take the shape of a big flat, which consists of three waves.

The second wave, the wave b is expected to end around 3,856 ringgit, to be reversed by a downward wave c.

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