SINGAPORE: Palm oil may hover above a support at 5,394 ringgit per tonne, or bounce into a range of 5,571-5,702 ringgit.
This support is identified as the 100% projection level of the wave C from 6,698 ringgit.
This wave may either end around 5,394 ringgit or extend a lot into a range of 4,588-4,896 ringgit.
Regardless of the ending point, the downtrend may pause around this support.
Palm oil edges toward worst weekly session in six
A break below 5,394 ringgit may trigger a moderate fall to 5,303 ringgit.
The support is not working alone. It is strengthened by the other two on the daily chart, respectively at 5,438 ringgit and at 5,477 ringgit.
A decent bounce or a reversal of the downtrend is expected to occur around these supports.
The worse scenario could be a brief piercing below 5,394 ringgit.
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