SINGAPORE: Palm oil may retrace into a range of 3,308 ringgit to 3,341 ringgit per metric ton, as it failed to break a resistance at 3,394 ringgit.

The resistance is identified as the 61.8% projection level of a wave c, which may either end around this level or extend to 3,480 ringgit.

Even though it is not very clear where this wave is going to complete, a correction has been apparently triggered.

The correction may extend deep enough to cover a small gap forming on June 9.

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A break above 3,394 ringgit could lead to a gain to 3,427-3,480 ringgit range. On the daily chart, a projection analysis reveals a similar resistance at 3,408 ringgit.

The contract may hover below this barrier for at least one day.

Eventually, it may break this level and rise into a range of 3,518 ringgit to 3,627 ringgit, as suggested by the bullish divergence on the MACD.