SINGAPORE: Palm oil may retest a support of 3,974 ringgit per tonne, a break below could open the way towards 3,892-3,931 ringgit range. The contract is riding on a wave c which is expected to travel to 3,931 ringgit, its 100% projection level.

A retracement analysis on the uptrend from 3,728 ringgit reveals a support of 3,994 ringgit, which stopped this wave and triggered a bounce.

The wave c has a fierce character. It is unlikely to be deeply reversed by the current bounce, which may end around 4,077 ringgit.

A break above 4,089 ringgit may lead to a gain into 4,126-4,172 ringgit range. On the daily chart, the contract failed to stabilise around the bottom of a wave 4.

Palm oil may drop more into 4,006-4,052 ringgit range

It is likely to drop more towards the bottom of the wave 2 around 3,907 ringgit.

The contract has briefly pierced below the support of 4,022 ringgit, it is likely to keep falling towards 3,907 ringgit.