Palm oil may fall towards 4,588 ringgit

SINGAPORE: Palm oil may break a support at 4,896 ringgit per tonne and fall towards 4,588 ringgit.

The contract is riding on a wave C from 6,698 ringgit.

This wave could travel to its 161.8% projection level of 4,588 ringgit, as it has briefly extended below the 138.2% level of 4,896 ringgit.

Resistance is at 5,086 ringgit, a break above could lead to a gain at 5,204 ringgit.

Palm hovers near over five-month low on losses in crude, rival oils

On the daily chart, a wave (c) from 7,229 ringgit is unfolding, which is travelling towards a range of 4,331 ringgit to 4,754 ringgit.

A bounce target of 5,177 ringgit has been temporarily aborted. It will only be resumed when the contract goes above the June 21 high of 5,081 ringgit.