Palm oil (FCPOc3) may extend gains to 4,633 ringgit per metric ton, as a three-wave cycle from 4,710 ringgit has completed.
The peak of the wave b at 4,633 ringgit serves as a target. The strong rise during the previous trading session suggests an intact uptrend within a rising channel.
At its full capacity, the market may climb to 4,780 ringgit. The rally in grains overnight could lend support to palm oil prices.
Support is at 4,547 ringgit, a break below which may trigger a fall into 4,501-4,526 ringgit range. On the daily chart, the contract managed to hover above both a support at 4,524 ringgit and the lower trendline of a triangle. It may climb towards 4,675 ringgit.
The nature of the current rise remains unknown. It may turn out to be a continuation of the uptrend from 3,888 ringgit or a part of the consolidation within the triangle. In either case, the market is likely to rise towards 4,675 ringgit.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.