SINGAPORE: Palm oil may break a resistance at 4,459 ringgit a tonne and rise towards 4,607 ringgit, to complete a wave E.
This is the final wave of an uptrend from 3,220 ringgit.
It has been observing a set of projection levels on rise from 3,594 ringgit.
Following a shallow correction, the contract approached the resistance again.
Its persistence represents a prevailing bullish sentiment.
It is not very clear how the drops of the overnight US grains could affect the opening price of palm oil.
Palm oil jumps nearly 5% to 12-wk highs on supply woes
An open price within the range of 4,311 ringgit to 4,368 ringgit will be well under expectations.
A break below 4,311 ringgit could open the way towards 4,135-4,220 ringgit range.
The target of 4,607 ringgit has to be aborted accordingly.
On the daily chart, the contract is rising towards 4,495 ringgit – the peak of the wave (4), as suggested by an inverted head-and-shoulders.
It must be noted that the current rise is likely to end around 4,495 ringgit, which is pretty near 4,607 ringgit (hourly chart).
A decent correction is expected to follow, which could deeply extend to 3,647-3,891 ringgit range.