SINGAPORE: Palm oil may test a resistance at 5,585 ringgit per tonne, a break above could lead to a gain into the 5,608-5,676 ringgit range.
The current strong rise suggests the progress of an extended wave 5, which consists of five smaller waves.
The powerful wave 5-3 is unfolding.
This wave 5-3 could be much longer than the wave 5-1, to travel above 5,676 ringgit.
After clearing the resistance at 5,484 ringgit, the contract is well on its way towards 5,558 ringgit.
A correction from the current level may be limited to 5,425 ringgit. On the daily chart, palm oil broke a resistance at 5,473 ringgit. The break opened the way towards 5,641 ringgit.
A rising trendline points at a higher target of 5,821 ringgit.
Resistances established by the trendline proved to be very effective in triggering deep drops. Chances are a decent correction may occur in the range of 5,641 ringgit to 5,821 ringgit.
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