SINGAPORE: Palm oil may seek a support around 6,220 ringgit per tonne, as suggested by a retracement analysis.
The support is identified as the 61.8% retracement analysis on the rise from 5,926 ringgit to 6,698 ringgit.
It is strengthened by a similar one of 6,233 ringgit.
The steep fall from 6,698 ringgit experienced no disruption.
The lower the contract drops, the more likely it is stopped by a bounce.
Most likely, this bounce would occur around 6,220 ringgit.
Resistance is at 6,423 ringgit, a break above could lead to a gain into 6,516-6,577 ringgit range.
On the daily chart, the long-shadowed black candlestick on May 27 suggests a further drop on Monday.
The lower trendline points at a target zone of 6,115 ringgit to 6,233 ringgit.
A bullish target of 7,229 ringgit has to be temporarily aborted.
It will be reconsidered only when the contract breaks 6,577 ringgit.