SINGAPORE: Palm oil may retest a resistance at 5,048 ringgit per tonne, a break above which could lead to a gain into a range of 5,187-5,274 ringgit.

The uptrend remains steady, as a five-wave cycle from 4,125 ringgit has not completed. The correction triggered by the resistance was driven by a wave 4, which may end in the support range of 4,769-4,822 ringgit.

The wave 5 will then start and travel towards a range of 5,187-5,274 ringgit. A break below 4,769 ringgit could be followed by a drop to 4,683 ringgit.

On the daily chart, both a flag and a rising trendline suggest a target of 5,170 ringgit.

The contract is expected to stabilize around 4,878 ringgit and retest the resistance at 5,024 ringgit.

The low of a big white candlestick at 4,753 ringgit may serve as a limit to a further drop.

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