SINGAPORE: Palm oil may retreat towards 3,602 ringgit, as it faces resistance at 3,757 ringgit per tonne.

The gap forming on Thursday has been partially covered. It looks like an exhaustion gap, as it appeared after the completion of a small five-wave cycle.

The contract may not fall so deep to reach 3,602 ringgit. But it is likely to further erase the gains made on Thursday.

A break above 3,757 ringgit may lead to a moderate gain to 3,853 ringgit.

On the daily chart, the contract is pulling back towards a rising trendline.

The pullback may end below 3,915 ringgit. The downtrend from 4,525 ringgit may resume thereafter.

A break above 3,915 ringgit could signal the continuation of the uptrend.

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