The Edge Markets (28/11/2017) - SINGAPORE (Nov 28): The palm oil third month contract still targets a range of 2,519-2,555 ringgit per tonne, as suggested by its wave pattern, a projection analysis and a trendline.

The downtrend from the Nov. 9 high of 2,837 ringgit consists of five waves. The fifth wave labeled 5 may be as long as the first wave labeled 1, to extend to 2,555 ringgit - the 123.6 percent projection level of a downward wave C.

The falling trendline suggests a lower target at 2,519 ringgit. A retracement analysis on the daily chart indicates a similar target at 2,537 ringgit, as palm oil has broken a support at 2,606 ringgit.

Resistance is at 2,612 ringgit (first chart), a break above which could lead to a gain to 2,645 ringgit.