SINGAPORE: Palm oil may test a resistance of 4,085 ringgit per tonne, a break above which could lead to a gain to 4,269 ringgit.
The rise from the July 14 low of 3,489 ringgit has extended, driven by a wave c, which is travelling towards 4,269 ringgit, as it is expected to be as long as the wave a.
The bullish divergence on the hourly RSI simply suggests a further gain.
The further the contract rises, the more convincing that the downtrend from 6,698 ringgit has reversed. A break below 3,937 ringgit could trigger a drop into 3,717-3,857 ringgit range.
Palm oil may test resistance at 4,085 ringgit
On the daily chart, the downtrend is slowly but firmly turning around.
This could be due to the completion of a five-wave cycle from 6,698 ringgit.
The bullish divergence suggests a big potential for the upside.