SINGAPORE: Palm oil may rise into a range of 6,713-6,731 ringgit per tonne, driven by a wave (c).
This wave started at 6,289 ringgit.
It is expected to travel to 6,928 ringgit, its 100% projection level.
An inverted head-and-shoulders has been almost confirmed, suggesting a higher target of 7,229 ringgit.
However, these targets look too far away to be realistic.
Another projection analysis on the uptrend from 6,066 ringgit reveals an immediate target of 6,713 ringgit while a retracement analysis marks a slightly higher one of 6,731 ringgit.
Due to the strong momentum on Thursday, market is likely to open high on Friday.
If the contract surprisingly opens low and fails to break above 6,577 ringgit, it may retrace a bit to 6,466 ringgit before rising again.
Palm oil may retest resistance at 6,354 ringgit
On the daily chart, the uptrend is developing within a range defined by two trendlines.
The upper trendline points at a target of 7,229 ringgit.
Source: Brecorder
