SINGAPORE: Palm oil may revisit its May 12 high of 4,525 ringgit per tonne, as it is about to break a resistance at 4,450 ringgit.

The resistance is identified as the 361.8% projection level of an uptrend from 3,375 ringgit.

The shallow correction triggered by the resistance has been almost reversed. The reversal signals a continuation of the uptrend.

Support is at 4,379 ringgit, a break below which could cause a fall into 4,266-4,336 ringgit range.

Palm edges up as rival oils gain, exports strengthen

On the daily chart, the contract is presumed to be riding on a wave (C) from the 2008 low of 1,331 ringgit.

Following its failure to travel above a resistance at 4,608 ringgit, this wave is unfolding towards this barrier again.

The move indicates an incomplete wave (C), which could eventually extend to 5,124 ringgit.

The contract may fail again to break 4,608 ringgit in its current attempt, as the correction triggered by this barrier in May 2021 was very deep.

A much shallower correction may occur around this level.

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