SINGAPORE: Palm oil may extend its gains into 5,032-5,048 ringgit per tonne, as it has broken a key resistance at 4,909 ringgit.
The break confirms an extension of the wave 3 from 4,318 ringgit, towards the 5,187-5,274 ringgit range.
A projection analysis on a big wave C from 4,125 ringgit reveals a break above 4,841 ringgit, the 61.8% level. The break opens the way towards 5,341 ringgit.
A break below 4,909 ringgit, now a support, may cause a shallow fall to 4,822 ringgit. On the daily chart, the contract has broken a resistance at 4,878 ringgit.
Palm oil slips on lower exports
It is expected to gain more to 5,170 ringgit.
A flag suggests a higher target of 5,340 ringgit.
However, a realistic target could be 5,024 ringgit.
A rising trendline suggests the occurrence of a decent correction around 5,170 ringgit.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Source: Brecorder
