SINGAPORE: Palm oil may rise to a range of 3,348-3,381 ringgit per tonne, as the fall from the Jan. 6 high of 3,888 ringgit has completed.

The completion was indicated by the five-wave structure of the fall, and the bounce from around a support 3,173 ringgit. This bounce is expected to at least extend to 3,348 ringgit, near the peak of a wave 4.

Support is at 3,261 ringgit, a break below which may cause a fall into 3,173-3,221 ringgit range.

On the daily chart, a retracement analysis on the uptrend from 2,691 ringgit to 3,888 ringgit reveals a key support at 3,148 ringgit, the 61.8% level.

The hammer forming on Wednesday and the white candlestick on Thursday above this support make a perfect bullish reversal signal. The downtrend from 3,888 ringgit will be further reversed.

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