SINGAPORE: Palm oil may break a support at 4,902 ringgit per tonne, and fall to the next support at 4,827 ringgit.
The contract is riding on a wave c, which may travel into a wide range of 4,555 ringgit to 4,751 ringgit.
The bounce over the past two days seems to have ended around a resistance at 4,963 ringgit. Palm oil is poised to retest the support at 4,827 ringgit.
A break above 4,963 ringgit may lead to a gain limited to 5,024 ringgit. On the daily chart, signals are a bit mixed as the contract is stuck in a narrow range of 4,878-5,024 ringgit.
Given that the contract failed many times to break the resistance at 5,024 ringgit, it is likely to break below the support at 4,878 ringgit after the formation of three black candlesticks between Tuesday and Thursday.
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