SINGAPORE: Palm oil may fall into a range of 4,625-4,676 ringgit per tonne, as a downtrend from 5,220 ringgit could have resumed.
The resumption has been confirmed by the drop on Thursday. The trend is extending within a falling channel, which suggests a target of 4,555 ringgit.
A double zigzag is presumed to be developing. It consists of seven waves. The fifth wave labelled a is driving the price down.
Resistance is at 4,812 ringgit, a break above which could lead to a gain into 4,873-4,948 ringgit.
On the daily chart, the uptrend looks unsteady within the upper channel.
The drop on Thursday could be regarded as a pullback towards the channel, only if palm oil could stabilize above 4,698 ringgit.
Signals on the hourly chart suggest a break below 4,698 ringgit.
An aggressive target of 3,936 ringgit could be established once the contract falls into 4,587-4,698 ringgit range.
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