SINGAPORE: Palm oil may revisit its Tuesday low of 3,865 ringgit a tonne, driven by a wave C. This wave looks incomplete, as it is capable of travelling to 3,590 ringgit, its 100% projection level.
It consists of three smaller waves.
The support at 3,861 ringgit triggered a strong bounce, which was driven by the small wave b.
The downward small wave c may have just started, unfolding towards 3,865 ringgit.
A break above 4,132 ringgit could lead to a gain into 4,196-4,300 ringgit range.
On the daily chart, the strong rise on Tuesday was regarded as a part of the consolidation within a narrow range of 3,891-4,070 ringgit.
Only when palm oil stands firm above 4,070 ringgit, could this interpretation be revised.
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The right shoulder of an inverted head-and-shoulders is extending towards a range of 3,522-3,647 ringgit, assuming that these shoulders are roughly symmetrical.
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