SINGAPORE: Palm oil faces a resistance at 4,452 ringgit per tonne, it may hover below this level or retrace towards a support at 4,269 ringgit.

A five-wave cycle from 3,489 ringgit is expected to end around this resistance, which is strengthened by a similar one established by a rising channel.

The contract may either drop towards the lower channel line support around 3,857 ringgit or resume its downtrend.

A break above 4,452 ringgit could lead to a gain to 4,680-4,918 ringgit range.

On the daily chart, the bounce from the July 14 low of 3,489 ringgit seems to have been driven by a wave (4), the fourth wave of the downtrend from 7,229 ringgit.

Palm falls over 2% on profit-taking, weaker soyoil

This wave may end in the range of 4,493-5,048 ringgit, which is defined by a small wave 4.

A break above 4,543 ringgit could lead to a gain to 4,754 ringgit.