SINGAPORE: Palm oil may retest a resistance at 4,269 ringgit per tonne, a break above which could lead to a gain to 4,452 ringgit.
The stabilization of the price around 4,085 ringgit suggests a completed correction from the Aug. 12 high of 4,495 ringgit.
The bounce from 4,000 ringgit may consist of three waves.
The wave c is expected to travel into 4,269-4,452 ringgit range.
A break below 4,085 ringgit would signal the extension of the correction towards 3,717-3,857 ringgit range. On the daily chart, signals are a bit mixed, while palm oil is stuck in a neutral range of 4,070-4,331 ringgit.
Wave pattern suggests a downside bias, as the contract could be riding on a wave (5) which targets 3,522 ringgit.
This wave will be confirmed when the contract breaks 4,070 ringgit.
A break above 4,331 ringgit could indicate an extension of the uptrend towards 4,543 ringgit.