SINGAPORE: Palm oil may stabilize around a support at 3,895 ringgit per tonne, and bounce towards a zone of 3,965-4,052 ringgit.

The support is provided by the 50% retracement of the uptrend from 3,598 ringgit to 4,192 ringgit. It is strengthened by another support established by the narrow congestion area forming between March 8 and March 10.

Chances are the current fall may temporarily end around 3,895 ringgit.

A further drop below this level may be limited to 3,825 ringgit.

On the daily chart, the drop is regarded as a pullback towards the Jan. 6 high of 3,884 ringgit. The uptrend remains steady.

It is riding on a wave C from 2,691 ringgit, which is capable of travelling into 4,301-4,576 ringgit range.

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