SINGAPORE: Palm oil may rise into a range of 5,048-5,101 ringgit per tonne, driven by a wave c.
This wave is expected to travel to 5,071 ringgit, its 100% projection level, which falls within the target zone.
The contract has been observing closely a set of projection levels on the uptrend from 4,318 ringgit.
The resistance at 4,998 ringgit, the 186.4% level, looks vulnerable under repeated attacks by bulls, which have successfully pushed the price above a falling channel.
A duplicated channel suggests an aggressive target of 5,251 ringgit. It is critical that the contract stays above 4,962 ringgit, a break below which will not only trigger a fall towards 4,866-4,909 ringgit range, but also signals a false break above the lower channel on Thursday.
On the daily chart, the contract is poised to break a resistance at 5,024 ringgit after many failures.
A break could lead to a gain into 5,170-5,350 ringgit range.
A bullish flag suggests the target at 5,350 ringgit as well.
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