SINGAPORE: Palm oil may break a resistance at 5,048 ringgit per tonne and rise into a range of 5,187-5,274 ringgit.
The strong rise on Wednesday confirms the continuation of the wave 3 towards the target zone. A projection analysis on an upward wave C from 4,032 ringgit suggests a higher target of 5,341 ringgit.
Most likely, the contract could open above 5,048 ringgit on Thursday. An open below this level may be followed by a shallow correction towards the support zone of 4,909-4,962 ringgit.
Palm rebounds on stronger US soyoil, tight supply view
On the daily chart, the uptrend has resumed towards 5,170 ringgit, a target suggested by a flag and a rising trendline.
The big white candlestick on Wednesday represents a strong bullish momentum, which could easily push the price above the immediate resistance at 5,024 ringgit.
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