SINGAPORE: Palm oil may retreat moderately to 4,407 ringgit per tonne before retesting a resistance at 4,587 ringgit, as it broke a support at 4,493 ringgit.
The break opened the way towards 4,407 ringgit. A further fall below this level is less likely, as the uptrend looks incomplete.
Based on the depth of the correction from the July 30 high of 4,498 ringgit, the trend may extend to 4,878 ringgit. A break below 4,407 ringgit could cause a fall into 4,239-4,321 ringgit range.
On the hourly chart, the contract is riding on a wave 3, which failed to overcome a resistance at 4,557 ringgit, its 161.8% projection level.
The failure has triggered a correction which may be limited to 4,409 ringgit, close to 4,407 ringgit on the daily chart.
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