SINGAPORE: Palm oil still targets Oct. 22 low of 4,816 ringgit per tonne, as the bounce from this level has ended.

The bounce has been driven by a wave b, the second wave of the drop from the Oct. 21 high of 5,220 ringgit.

This wave will be reversed by the current wave c.

A five-wave cycle from 4,032 ringgit looks incomplete. Chances are the wave c could be much shorter than the wave a, probably to end around 4,822 ringgit.

Resistance is at 5,048 ringgit, a break above which could lead to a gain into 5,187-5,274 ringgit range.

On the daily chart, the bearish engulfing pattern forming between Oct. 20 and Oct. 21 still has its strong impact on the market sentiment.

The doji forming on Wednesday around 5,024 ringgit gives it away, bulls are reluctant to push the price higher.

A drop towards 4,878 ringgit is highly likely.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.