SINGAPORE: Palm oil may bounce to 3,666 ringgit ($815.57) per tonne, before resuming its downtrend, as it has found a support at 3,489 ringgit.
A five-wave cycle from 4,216 ringgit completed around this support.
A bounce was triggered, extending towards the peak of the wave 4 around 3,738 ringgit. However, all past bounces during the process of the fall from 4,216 ringgit look very weak.
It is really doubtful if palm oil could bounce to 3,738 ringgit.
Most likely, it will end bounce around 3,666 ringgit.
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A break below 3,549 ringgit may be followed by a drop limited to 3,489 ringgit.
On the daily chart, the downtrend from 4,495 ringgit is riding on a wave (5), which may travel into a target zone of 2,540-2,963 ringgit, as it shows no sign of completing around 3,489 ringgit.
Even though bulls have completely lost the battle, they may launch a counter strike around the good support of 3,489 ringgit.
After so many days of black candles, a white candle is likely to appear on Friday.
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