SINGAPORE: Palm oil may break a support at 3,565 ringgit per tonne and fall to 3,504 ringgit. The bounce triggered by the support seems to have ended around a resistance at 3,662 ringgit.
Even though the contract attempted to bounce again, it failed to push the price above 3,614 ringgit.
Chances are low that it makes the third attempt. Indeed, the wave C from 3,820 ringgit may have resumed. After the small hiccups around 3,565 ringgit, this wave is poised to travel towards 3,407 ringgit.
A break above 3,614 ringgit could lead to a weak gain to 3,662 ringgit.
Palm oil hits one-month closing low on weak exports
On the daily chart, the current fall roughly observes a set of projection levels on a wave c from 3,980 ringgit.
This is the third wave of a downtrend from the March 2 high of 4,425 ringgit. It is capable of travelling into a wide range of 3,055-3,408 ringgit.
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