Palm oil may fall to 4,781 ringgit, driven by fierce wave (c)

SINGAPORE: Palm oil may break a support at 4,827 ringgit per tonne, and fall towards a range of 4,706 ringgit to 4,781 ringgit.

The deep fall on Tuesday confirmed the development of a wave c, which may travel into a wide range of 4,555 ringgit to 4,751 ringgit. A retracement analysis on the fall from 5,220 ringgit reveals more precise support and targets.

Before falling towards the target range, the contract may bounce towards 4,902 ringgit first due to a trendline support around 4,827 ringgit.

Most likely, palm oil would open around 4,902 ringgit on Wednesday and drop toward 4,827 ringgit thereafter because of its inter-market interaction with CBOT grains.

A break above 4,902 ringgit may lead to a gain to 4,963 ringgit. On the daily chart, the big black candle on Tuesday characterizes a fierce wave (c), which could travel below 4,698 ringgit.

A rising channel points at a similar target. Only a break above 5,024 ringgit could confirm the continuation of the uptrend.

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