SINGAPORE: Palm oil is expected to bounce in 4,751-4,812 ringgit range, as it has completed a fall from 5,069 ringgit around a key support at 4,555 ringgit per tonne.

The support is identified as the 100% projection level of a downward wave c, which is expected to end around 4,555 ringgit or extend a lot into 4,237 to 4,359 ringgit range.

Regardless of its end point, this wave is considered temporarily over and subject to a further reversal.

Support is at 4,625 ringgit, a break below which could cause a fall into 4,480-4,555 ringgit range.

On the daily chart, the contract managed to hover above a support at 4,587 ringgit.

The risk for a drop towards 3,936 ringgit has been minimised.

A more positive effect of the support is it may help resume the uptrend towards 5,170 ringgit. The resumption will largely depend on the strength of the following price recovery.

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