SINGAPORE: Palm oil may revisit its Oct. 25 high of 4,263 ringgit per tonne, as it may have resumed its uptrend from the Sept. 28 low of 3,220 ringgit.
A rising trendline remains intact, suggesting a steady uptrend which is riding on a wave E that could travel far above 4,263 ringgit.
Based on the depth of the fall from 4,263 ringgit, the wave E could extend to 4,600 ringgit.
Support is at 4,105 ringgit, a break below which may be followed by a drop into 3,929-4,007 ringgit range.
On the daily chart, the contract jumped above 4,070 ringgit after briefly piercing below this support on Oct. 28.
It may have completed a pullback towards an inverted head-and-shoulders.
The pattern indicates a target of 4,495 ringgit.
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A close of the price below 4,070 ringgit on Monday would suggest the extension of the pullback towards 3,891 ringgit.
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Source: Brecorder
