SINGAPORE: Palm oil may retest a support at 5,484 ringgit per tonne, a break below which could cause a fall into 5,366-5,425 ringgit range.

The drop from the Monday high of 5,749 ringgit was so deep that it extended below a rising channel.

A duplicated channel suggests a further drop towards 5,366-5,425 ringgit range.

A wave 5 may have completed, even though its final component wave, the wave 5-5 looks much shorter than the wave 5-1.

Palm ends lower on weaker rival oils

Resistance is at 5,608 ringgit, a break above which could lead to a gain to 5,676 ringgit.

On the daily chart, the contract failed twice to break a trendline.

A top could be forming around the resistance at 5,641 ringgit.Each time the contract failed to break the trendline, a deep drop followed.

This pattern may repeat.

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