SINGAPORE: Palm oil may revisit its Sept. 20 low of 3,631 ringgit per tonne, following its failure to break a resistance at 3,897 ringgit and the subsequent drop.
The failure suggests a completion of the wave c from this low.
This wave is unlikely to extend above 3,897 ringgit as it is only a part of the bounce from 3,481 ringgit.
The downtrend from the Aug. 12 high of 4,495 ringgit may have resumed.
Resistance is at 3,796 ringgit, a break above could lead to a gain into 3,847-3,897 ringgit range. On the daily chart, the contract failed to break a resistance at 3,891 ringgit.
The failure increases the chance of a drop towards 3,647 ringgit.
A further fall could confirm the continuation of the downtrend towards 3,522 ringgit.