SINGAPORE: Palm oil may retest a support at 5,484 ringgit per tonne, a break below which could cause a fall into 5,366-5,425 ringgit range.
The drop from the Monday high of 5,749 ringgit was so deep that it extended below a rising channel.
A duplicated channel suggests a further drop towards 5,366-5,425 ringgit range.
A wave 5 may have completed, even though its final component wave, the wave 5-5 looks much shorter than the wave 5-1.
Palm ends lower on weaker rival oils
Resistance is at 5,608 ringgit, a break above which could lead to a gain to 5,676 ringgit.
On the daily chart, the contract failed twice to break a trendline.
A top could be forming around the resistance at 5,641 ringgit. Each time the contract failed to break the trendline, a deep drop followed.
This pattern may repeat.
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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