Palm oil may test support at 3,683 ringgit

SINGAPORE: Palm oil may test a support at 3,683 ringgit per tonne, a break below which could open the way towards the 3,500-3,606 ringgit range. The deep fall on Wednesday confirms the continuation of a wave C from 4,276 ringgit, which is travelling towards its 100% projection level of 3,500 ringgit.

The contract has completed a pullback towards the resistance at 3,796 ringgit, the former key support. It is unlikely to approach this level again.

Palm oil posts biggest loss in six weeks on weaker rival oils

On the daily chart, the contract is retesting the support at 3,708 ringgit, following its failure to break this level in December 2022.

With the newly built momentum, palm oil may overcome this barrier soon and fall towards 3,521 ringgit.