Palm oil may fall to 4,105 ringgit

SINGAPORE: Palm oil may break a support at 4,197 ringgit per tonne and fall to the next support at 4,105 ringgit.

The strong gain on Wednesday is regarded as a pullback towards the neckline of a double-top. Apparently, the pullback ended around 4,312 ringgit. The drop from 4,498 ringgit may have resumed.

A break above an immediate resistance of 4,251 ringgit could lead to a gain into a range of 4,312-4,383 ringgit.

Palm falls on weakness in rival oils

On the daily chart, the depth of the drop from the July 30 high of 4,498 ringgit signals a reversal of the uptrend from the June 18 low of 3,251 ringgit.

Three waves make up the current drop. The third wave labelled c may have started. It is expected to travel into the zone of 3,936-4,116 ringgit.

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