Palm oil may bounce to 4,000 ringgit

SINGAPORE: Palm oil may bounce to 4,000 ringgit, as it has found a support at 3,857 ringgit per tonne.

The stabilization of the price around 3,857 ringgit is likely to be followed by a bounce towards 4,000-4,085 ringgit range.

The bounce is classified as a pullback towards the upper channel.

Malaysian palm oil futures drop

It may end below 4,085 ringgit. A further rise could signal an extension of the uptrend towards 4,269-4,452 ringgit range.

A break below 3,857 ringgit could open the way towards 3,598-3,717 ringgit range. On the daily chart, the downtrend from 7,229 ringgit is riding on a wave (5), which is expected to travel to 3,489 ringgit.