SINGAPORE: Palm oil may retest a support at 3,855 ringgit per tonne, a break below which could cause a fall into a zone of 3,743-3,805 ringgit.

A failed wave 5 may have ended around a resistance at 4,068 ringgit. It is a part of a wave c from 3,642 ringgit, which may have completed as well.

A break below 3,855 ringgit will not only open the way towards the target zone, but also confirm a double-top, which suggests a much lower target around 3,642 ringgit.

A break above 3,967 ringgit will open the way towards a zone of 4,010-4,068 ringgit.

On the daily chart, the contract tends to retreat towards a rising trendline again, to build a solid bottom for the subsequent rise.

The trendline establishes a support around 3,774 ringgit, which serves as a limit to the coming fall.

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