SINGAPORE: Palm oil may retest a resistance at 7,100 ringgit per tonne, a break above could lead to a gain to 7,302 ringgit.
The rise from the March 4 low of 6,166 ringgit may have adopted a five-wave mode.
The wave 5 is unfolding, which is expected to travel above 7,302 ringgit.
The pattern from the March 2 high of 7,108 ringgit looks like an ending triangle, which also suggests a further gain to 7,302 ringgit.
A break below 6,898 ringgit will signal an extension of the wave 4 towards 6,773 ringgit.
On the daily chart, the contract is facing a resistance at 7,166 ringgit.
A break could open the way towards 8,289 ringgit, as suggested by the upper channel.
Confirmation of a break will be when palm oil stands firm above 7,166 ringgit.
A failure to break could trigger a further consolidation or a deep drop towards 6,404 ringgit.
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