SINGAPORE: Palm oil may break a support at 3,721 ringgit per tonne and fall into 3,606-3,683 ringgit range. The bounce from the Jan. 25 low of 3,721 ringgit has been almost reversed.
The reversal confirms a continuation of a wave C towards 3,500 ringgit.
Even though it is not very clear why the support at 3,721 ringgit worked perfectly to stop the fall, this support simply looks vulnerable under bears’ repeated attacks. Immediate resistance is at 3,796 ringgit, a break above which may lead to a gain to 3,888 ringgit.
On the daily chart, a retracement analysis on he rise from 3,220 ringgit to 4,497 ringgit reveals a support of 3,708 ringgit, which has been standing on the way towards 3,500 ringgit.
Palm oil ends lower for second day on weak exports
The bounce triggered by this support on Jan. 25 could be the final effort of bulls to resist the fierce assaults by bears. Apparently, bulls have lost the battle.
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