SINGAPORE: Palm oil may bounce into a range of 6,326-6,392 ringgit a tonne, following its stabilization around a support at 6,104 ringgit.
The support is strengthened by a similar one at 6,138 ringgit, the 50% retracement of the uptrend from 5,477 ringgit to 6,799 ringgit.
The stabilization around these supports indicates a completion of the fall from 6,799 ringgit.
The fall will be either totally or partially reversed. A break below 6,104 ringgit may confirm the extension of the fall towards 5,855-5,966 ringgit range.
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On the daily chart, a retracement analysis on the fall from 7,268 ringgit to 5,477 ringgit reveals a support at 6,161 ringgit, which works together with the other two on the hourly chart to stop the fall.
Chances are the contract may bounce towards 6,373 ringgit.
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