SINGAPORE: Palm oil may break a support at 3,680 ringgit per tonne, and fall into a range of 3,601 to 3,637 ringgit. The rise from 3,567 ringgit may have been driven by a wave C, which seems to have completed around a resistance at 3,807 ringgit.
However, the wave C looks much shorter than the wave A.
Such a relation raises some doubt on whether the whole wave C was over.
Could the completion only be the first part? As long as the contract stays above 3,567 ringgit, the wave C would likely extend.
A break above 3,750 ringgit may lead to a gain into 3,807-3,864 ringgit range. On the daily chart, the correction over the past two days looks very moderate, compared with preceding rise from the April 17 low of 3,567 ringgit.
Palm oil may retrace to 3,680 ringgit
Could this correction be a strategic retreat of bulls before they launch an attack? The likelihood could be low, following the deep drop of the CBOT grains on Monday.
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