Palm oil may retest support at 3,465 ringgit after weak bounce

SINGAPORE: Palm oil may bounce into a range of 3,525-3,600 ringgit per tonne, before retesting a support at 3,465 ringgit.

The deep fall from the Feb. 16 high of 3,720 ringgit confirms a completion of the uptrend from the Jan. 20 low of 3,160 ringgit.

This uprend was driven by a wave B, the second wave of a presumed three-wave cycle from 3,888 ringgit.

This wave is expected to be reversed by the current wave C.

A retracement analysis on the uptrend from 3,210 ringgit to 3,720 ringgit reveals a support, around which the contract managed to stabilize.

A bounce is highly likely to occur around this support.

A break below 3,465 ringgit could open the way towards 3,300-3,405 ringgit range. On the daily chart, the contract may retest a trendline.

Following its several failures, palm oil may succeed this time. A break would confirm a reversal of the uptrend from the May 6, 2020 low of 1,939 ringgit.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.