SINGAPORE: Palm oil may break a support of 3,892 ringgit per tonne, and fall into a range of 3,810-3,856 ringgit, probably after a brief bounce. The contract is riding on a wave c, which has travelled below its 100% projection level of 3,931 ringgit.
Chances are this wave may extend into 3,736-3,810 ringgit range.
Before dropping towards this target zone, the contract may bounce moderately towards 3,974-4,006 ringgit range, to partially cover a gap forming on Wednesday.
On the daily chart, a rising trendline established a support around 3,907 ringgit, which may trigger a bounce towards 4,022 ringgit.
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The real behaviour of the market around this trendline is yet to present itself.
The high probability will be a consolidation or bounce.
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