Palm oil may fall into 3,466-3,545 ringgit range

SINGAPORE: Palm oil may fall into a range of 3,466 ringgit to 3,545 ringgit per tonne, as it could have completed a rally from the Jan. 20 low of 3,160 ringgit.

The rally was driven by a wave B, the second wave of a big flat developing from the Jan. 6 high of 3,888 ringgit.

This pattern consists of three waves that are roughly equal in length.

The wave C has started, unfolding towards 3,160 ringgit.

A projection analysis on the uptrend from 3,210 ringgit reveals a realistic target zone of 3,466-3,545 ringgit range.

A bounce from the current level may be limited to 3,752 ringgit. On the daily chart, a rising wedge is completing. The big black candlestick forming on Tuesday suggests a further fall on Wednesday.

Over the next two weeks, the contract may retreat towards 3,136 ringgit.

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