SINGAPORE: Palm oil may bounce into a range of 6,548 ringgit to 6,686 ringgit per tonne, following the completion of a wave c from 7,268 ringgit.
The completion of this wave is strongly suggested by its five-wave structure and a stabilization of the price around a support at 5,966 ringgit.
The purpose of the bounce could be covering a gap forming on March 14.
Support is at 6,104 ringgit, a break below which could cause a fall into 5,744-5,855 ringgit range.
On the daily chart, the contract found a support at 5,757 ringgit. It is bouncing towards 6,113 ringgit.
The current speculation is the contract may consolidate in the range of 5,757-6,113 ringgit for a few days before seeking its next direction.
A break above 6,113 ringgit could open the way towards 6,555 ringgit while a break below 5,757 ringgit may signal a continuation of the downtrend towards 5,400 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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