SINGAPORE: Palm oil may climb into a range of 4,418 ringgit to 4,459 ringgit, as it has broken a resistance at 4,343 ringgit per tonne. The resistance is identified as the 161.8% projection level of a wave 3 from 3,851 ringgit.
This wave now has a better chance to extend into 4,575-4,647 ringgit range.
The drop triggered by the resistance at 4,418 ringgit last week is regarded as a pullback towards the Jan. 3 high of 4,276 ringgit.
The pullback may have completed as palm oil has been recovering steadily from the drop.
A break below 4,271 ringgit could be followed by a fall into 4,155-4,227 ringgit range.
On the daily chart, the contract is riding on a wave C from 3,721 ringgit, which is expected to travel into a range of 4,510-4,998 ringgit range.
Palm oil logs fourth weekly rise on flooding woes
An inverted head-and-shoulders is taking shape, which will be confirmed when the resistance at 4,510 ringgit is broken.
It will suggest an aggressive target of 5,787 ringgit.
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