SINGAPORE: Palm oil may retest a resistance zone of 5,032-5,048 ringgit per tonne, a break above which could lead to a gain into a range of 5,187-5,274 ringgit.

The contract is presumed to be riding on a wave 5, which is unfolding towards range of 5,187-5,274 ringgit, as pointed by a rising channel.

This target range will be confirmed, when oil breaks 5,048 ringgit, as the wave 4 seems to be too brief to complete.

Palm oil takes breather from record highs

A break below 4,909 ringgit could signal the extension of this wave 4 towards 4,769-4,822 ringgit range.

On the daily chart, the contract may rise towards 5,170 ringgit, as suggested by a flag pattern and a rising trendline.

Following its failure on Oct. 13, the contract may succeed in breaking this resistance and rising further. The open price of this day at 4,787 ringgit may serve as a limit to an unexpected drop below 4,878 ringgit.

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