SINGAPORE: Palm oil may test a resistance zone of 3,341-3,368 ringgit per metric ton, a break above which could lead to a gain into a zone of 3,394-3,432 ringgit. The rise from 3,194 ringgit is presumed to consist of three waves.
The wave b extended a bit further than expected.
This wave would be reversed by the current wave c.
A break below 3,255 ringgit could open the way towards 3,194 ringgit.
On the daily chart, the rise from the June 1 low of 3,194 ringgit and the bullish divergence on MACD indicate a reversal of the downtrend from 3,980 ringgit, or the longer trend from the March 2 high of 4,425 ringgit.
The contract is expected to climb into a range of 3,845-3,980 ringgit.
The correction triggered by the resistance at 3,408 ringgit seems to have ended around a support at 3,273 ringgit.
The market may retest the resistance at 3,408 ringgit.
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