SINGAPORE: Palm oil is expected to bounce in 4,751-4,812 ringgit range, as it has completed a fall from 5,069 ringgit around a key support at 4,555 ringgit per tonne.
The support is identified as the 100% projection level of a downward wave c, which is expected to end around 4,555 ringgit or extend a lot into 4,237 to 4,359 ringgit range.
Regardless of its end point, this wave is considered temporarily over and subject to a further reversal.
Support is at 4,625 ringgit, a break below which could cause a fall into 4,480-4,555 ringgit range.
On the daily chart, the contract managed to hover above a support at 4,587 ringgit.
The risk for a drop towards 3,936 ringgit has been minimised.
A more positive effect of the support is it may help resume the uptrend towards 5,170 ringgit. The resumption will largely depend on the strength of the following price recovery.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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