08.06.2023 (Business Recorder) - SINGAPORE: Palm oil may retest a resistance at 3,372 ringgit per metric ton, a break above could lead to a gain into the 3,425-3,511 ringgit range.

The current rise consists of three waves. So far, only two have unfolded.

The wave c is capable of travelling into the 3,425-3,511 ringgit.

A retracement analysis on the downtrend from 3,837 ringgit reveals its close relation to the rise.

It might not be groundless to expect an extension of the wave c to 3,685 ringgit, which is pointed by a falling channel, as the rise may develop into a short-term trend as big as the one from the April 28 low of 3,288 ringgit.

A break below 3,288 ringgit could be followed by a drop to 3,194 ringgit.

On the daily chart, the gain looks far from complete.

The bullish divergence on MACD and the rise from the June 1 low of 3,194 ringgit indicate a reversal of the downtrend from 3,980 ringgit, or the longer trend from the March 2 high of 4,425 ringgit.

Under these scenarios, 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 little impact on the rise, as market has stabilized aorund a support of 3,273 ringgit.

https://www.brecorder.com/news/40246642/palm-oil-may-retest-resistance-at-3372-ringgit