Palm oil may test support at 5,002 ringgit

SINGAPORE: Palm oil may test a support at 5,002 ringgit per tonne, a break below which could open the way to 4,927 ringgit.

The contract failed to break the lower support at 4,927 ringgit in its first attempt on Tuesday.

It may make the second attempt, due to a completion of a five-wave cycle from 4,294 ringgit.

The cycle is expected to be further reversed, unless the high of 5,123 ringgit turned out to be wrongly marked as the peak of the wave 5.

A break above 5,094 ringgit may lead to a gain to 5,220 ringgit.

Palm oil may test support at 4,927 ringgit

On the daily chart, the contract still faces a resistance at 5,082 ringgit, which is strengthened by two other ones, respectively at 5,069 ringgit, the Nov. 19, 2021 high, and 5,086 ringgit, the Nov. 3, 2021 high.

The consolidation in the narrow range of 4,933-5,082 ringgit represents a weakness of the rally.

A deep correction towards 4,755 ringgit looks highly likely.

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