SINGAPORE: Palm oil may break a resistance at 5,676 ringgit per tonne and rise to 5,749 ringgit, driven by a wave 5-3.

The contract has resumed its uptrend within a rising channel, after a stabilisation around a support at 5,484 ringgit.

The channel suggests a target range of 5,868 ringgit to 5,986 ringgit. The current wave 5-3 has a fierce character.

It is capable of fulfilling this target range.

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Support is at 5,558 ringgit, a break below could violate the channel, and a bearish target zone of 5,425 ringgit to 5,484 ringgit range will be established accordingly.

On the daily chart, the contract found a support at 5,473 ringgit. It may retest a trendline resistance around 5,700 ringgit.

The past performances around the trendline suggest the second failure of the contract to break this line. Most likely, palm oil would briefly approach this line and drop.

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