SINGAPORE: Palm oil may fall more to 3,859 ringgit per tonne, as it has broken a support at 3,945 ringgit.

The rise from 3,495 ringgit could be broken down into three waves. The first and the third waves are roughly equal, as revealed by a projection analysis.

This relation, along with the sudden fall from 4,084 ringgit, strongly suggests the completion of a three-wave cycle.

Either the contract would retreat towards the bottom of the wave b at 3,642 ringgit, or the downtrend from the March 15 high of 4,192 ringgit would resume.

In either case, the contract is likely to fall more.

On the daily chart, a harami cross formed between April 22 and April 23, which is a bearish reversal signal.

The contract may open high on Monday, but this move could most likely be a bull trap.

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