SINGAPORE: Palm oil may bounce further to 3,504 ringgit per tonne, as suggested by a falling channel. The bounce is expected to be as strong as the one from the April 17 low of 3,567 ringgit, to extend to 3,504 ringgit or a higher level of 3,565 ringgit.
The downtrend is expected to resume, upon the completion of the bounce, as the trend is riding on a wave C, which may travel into a range of 3,152-3,249 ringgit.
On the daily chart, a harami cross formed between April 28 and May 2. It is regarded as a reversal pattern, suggesting a bounce towards 3,518 ringgit.
Palm oil reverses early losses
The downtrend from 3,980 ringgit has been riding on a wave c, which is expected to travel to 3,055 ringgit.
Based on this reading, the contract may resume its fall over the next few days.
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