Palm oil may bounce again to 3,945 ringgit before falling
- The drop could be limited to 3,698 ringgit.
SINGAPORE: Palm oil may bounce again to 3,945 ringgit, as it managed to stabilize around a support at 3,859 ringgit per tonne.
The stabilization is believed to be temporary, as a three-wave cycle from 3,495 ringgit has completed. The first and the third waves are roughly equal, as revealed by a projection analysis.
This is a convincing signal of the completion, confirmed by the deep fall from 4,084 ringgit. Either the contract would retreat towards the bottom of the wave b at 3,642 ringgit, or the downtrend from the March 15 high of 4,192 ringgit would resume.
A break above 3,945 ringgit may lead to a gain into 3,998-4,043 ringgit. On the daily chart, the contract found a support at 3,856 ringgit, it may bounce moderately before dropping towards the rising trendline.
The drop could be limited to 3,698 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.
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