SINGAPORE: Palm oil may retest a support of 4,114 ringgit per tonne, a break below which could open the way towards 4,001-4,071 ringgit range.
A five-wave cycle from 3,594 ringgit completed around a key resistance at 4,253 ringgit.
Unless the wave 5 extended unexpectedly, the correction triggered by the resistance may extend to 4,001 ringgit, as suggested by a rising channel.
The correction could roughly match the one from the Oct. 7 high of 3,846 ringgit.
A break above 4,253 ringgit may confirm the extension of the wave 5 towards 4,322-4,495 ringgit range.
Palm oil erases some earlier gains as rival oils ease
On the daily chart, a pullback towards an inverted head-and-shoulders has been due. It is strange that the pullback is yet to occur.
Either this pullback happens around 4,331 ringgit, or it has started, only that it may take some time to extend to 3,891 ringgit.