SINGAPORE: Palm oil is poised to break a resistance at 4,028 ringgit per tonne, and rise to 4,192 ringgit.

More than 60% of the downtrend from 4,192 ringgit has been reversed. Chances are that this high may be revisited.

A failure to break 4,028 ringgit, which is around the peak of the wave B, would signal the development of a temporary peak. The contract may then start a correction.

Support is at 3,926 ringgit, a break below which could cause a fall to 3,844 ringgit.

On the daily chart, the uptrend looks steady. It is riding on a wave C which is expected to travel into 4,301-4,576 ringgit range.

The doji forming on Thursday will be considered as a bearish reversal signal only when the contract closed below 3,938 ringgit on Friday.

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