SINGAPORE: Palm oil may retest a support at 3,717 ringgit per tonne, a break below could open the way towards 3,489-3,598 ringgit range.
The bounce from 3,489 ringgit was against the short downtrend from 5,048 ringgit, as confirmed by a retracement analysis.
The corrective wave structure of the bounce, along with the deep drop from 4,306 ringgit, strongly suggests a continuation of the downtrend from 6,698 ringgit.
Resistance is at 3,973 ringgit, a break above which may signal an extension of the bounce towards 4,306 ringgit.
Palm oil may test support at 3,717
On the daily chart, the downtrend from 7,229 ringgit consists of five waves.
The final wave, the wave (5), is unfolding towards 2,540-2,963 ringgit range, as pointed by a falling trendline.
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