SINGAPORE: Palm oil may break a support at 4,827 ringgit per tonne, and fall towards a range of 4,706 ringgit to 4,781 ringgit.

The deep fall on Tuesday confirmed the development of a wave c, which may travel into a wide range of 4,555 ringgit to 4,751 ringgit. A retracement analysis on the fall from 5,220 ringgit reveals more precise support and targets.

Before falling towards the target range, the contract may bounce towards 4,902 ringgit first due to a trendline support around 4,827 ringgit.

Most likely, palm oil would open around 4,902 ringgit on Wednesday and drop toward 4,827 ringgit thereafter because of its inter-market interaction with CBOT grains.

A break above 4,902 ringgit may lead to a gain to 4,963 ringgit. On the daily chart, the big black candle on Tuesday characterizes a fierce wave (c), which could travel below 4,698 ringgit.

A rising channel points at a similar target. Only a break above 5,024 ringgit could confirm the continuation of the uptrend.

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.