SINGAPORE: Palm oil may gain more into a range of 4,555 ringgit to 4,625 ringgit per tonne, as suggested by its wave pattern.

The rise could have been driven by a wave b, the sixth wave of a double-zigzag developing from 5,220 ringgit.

This wave is expected to travel close to 4,676 ringgit, as pointed by a short channel.

The continuous chart has been a bit distorted due to a contract switch on Thursday. However, signals on the March contract undeniably support a bullish outlook.

The downtrend from the Oct. 21 high of 4,993 ringgit could have completed, as both a wave C and a small wave c ended around their 100% projection levels.

Over the next few days, the contract is expected to rise towards 4,773 ringgit, the peak of the wave b.

On the daily chart, the contract is bouncing towards 4,587-4,698 ringgit range.

The downtrend may resume upon the completion of the bounce in the target zone, as suggested by the lower channel.

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