SINGAPORE: Palm oil may test a support at 6,386 ringgit per tonne, a break could trigger a drop to a range of 6,204-6,317 ringgit.
The contract is riding on a wave c from 6,204 ringgit.
This wave closely observes a set of its projection levels.
It may end around 6,682 ringgit or extend to 6,977 ringgit. Before reaching 6,682 ringgit, palm oil started a correction which looks deep enough to suggest a completion of the wave c.
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Immediate resistance is at 6,499 ringgit, a break above which could lead to a gain into 6,591-6,682 ringgit range.
On the daily chart, the rise from the May 31 low of 6,204 ringgit looks weak, as represented by the small candlesticks.
Market sentiment looks still very cautious.
Bulls are not determined to push the price up.
The spinning top on Monday signals a correction towards 6,233 ringgit.
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