SINGAPORE: Palm oil may rise to 3,757 ringgit per tonne, driven by a wave 5.

The contract has almost broken a resistance at 3,679 ringgit, which is identified as the 276.4% projection level of an upward wave 5 from 2,764 ringgit.

Given that the preceding wave 3 looks rather short, this wave 5 may extend a lot.

A correction from the current level may be limited to a support at 3,631 ringgit.

On the daily chart, the contract is poised to test a resistance at 3,698 ringgit, the 86.4% projection level of an upward wave C from 2,691 ringgit.

This is the last barrier towards 3,856 ringgit. Based on the its strong momentum, this wave C may travel far above 3,856 ringgit.

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