SINGAPORE: Palm oil may revisit its July 14 low of 3,489 ringgit per tonne, as the bounce from this level has been almost reversed.
The reversal signals a continuation of the preceding downtrend.
Wave pattern suggests a much extended wave 5, which consists of five small waves.
The powerful wave 5-3 could be unfolding. Resistance is at 3,857 ringgit, a break above which could lead to a gain to 4,085 ringgit.
On the daily chart, the downtrend looks incomplete, simply based on the projection analysis, which suggests a target of 2,963 ringgit.
The weak bounce triggered by the support at 3,522 ringgit could in no way be regarded as a trend reversal.
It is more like a random noise in the development of the downtrend.